Question
St. Marks Hospital contains 450 beds. The occupancy rate varies between60% and 90% per month, but the average occupancy rate is generally 80%. In other
St. Marks Hospital contains 450 beds. The occupancy rate varies between60% and 90% per month, but the average occupancy rate is generally 80%. In other words, on average, 80% of the hospitals beds are occupied by patients.At this level of occupancy, the hospitals operating costs are $32 per occupied bed per day, assuming a 30-day month. This $32 figure contains both variable and fixed cost elements. This average cost figure drops to $29 when the occupancy rate is 90% (typically during the months of July and August). |
During June, the hospitals occupancy rate was only 60% and a total of $326,700 in operating costs was incurred during the month.
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