In the DRG Case mix problem Vicent Valley Hospital and Health System (VVH) has determined that it could convert 15 of its routine beds to ICU beds for a cost of $2000. What should VVH do and why?

VVH wants to determine the optimal case mix for diagnosis-related groups (DRGs) that will maximize profits. Limited resources (e.g., space, qualified employees) are available to serve patients classified in the various DRGs, and minimum levels of service (number of cases) must be achieved for each DRG.

(1) Use Excel's solver to find optimal cases for each DRG. Use name manager function to define blocks contain constraints, decision variables and coefficients.

(2) Answer below questions.

(a) How the total profit would be if VVH add one ICU bed day?

(b) How the total profit would be if VVH decides to take one more Birth/Delivery case?

(c) Currently, VVH earns $2,500 margin from Coronay Surgery. What is the maximum discount amount VVH can offer in Coronay Surgery?

(4)Suppose VHH can make flexibilities in availability of Routine bed and Nursing care. VHH can set up range of [360, 480] in the availability of Routine bed and range of [3,300, 4,300] in the availability of Nursing care. Which DRG(s) could be affected by these two flexibilities?