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1 . How well is the hospital currently utilizing its beds? 2 . Develop a similar table to show the effects of adding operations on

1. How well is the hospital currently utilizing its beds?
2. Develop a similar table to show the effects of adding operations on
Saturday. (Assume that 30 operations would still be performed
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each day.) How would this affect the utilization of the bed
capacity? Is this capacity sufficient for the additional patients?
3. Now look at the effect of increasing the number of beds by 50
percent. How many operations could the hospital perform per day
before running out of bed capacity? (Assume operations are
performed five days per week, with the same number
performed on each day.) How well would the new
resources be utilized relative to the current operation? Could the
hospital really perform this many operations? Why? (Hint: Look at
the capacity of the 12 surgeons and the five operating rooms.)
4. Although financial data are sketchy, an estimate from a
construction company indicates that adding bed capacity would
cost about $100,000 per bed. In addition, the rate charged for the
hernia surgery varies between about $900 and $2,000(U.S.
dollars), with an average rate of $1,300 per operation. The
surgeons are paid a flat $600 per operation. Due to all the
uncertainties in government health care legislation, Shouldice
would like to justify any expansion within a five-year time period.

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