In capacity planning in healthcare, there exists a nonlinear relationship between average delay, utilization, system variability and...

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Operations Management

In capacity planning in healthcare, there exists a nonlinearrelationship between average delay, utilization, system variabilityand system size.
(a) Explain those relations clearly.
(b) Prove the following relation by usingqueuing theory.
If the size of the system increases,the average delay decreases for a given utilization level. In otherwords, queueing systems have economies of scale.

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a Capacity planning in health care is greatly complicated by the nature of the service The individuality of each patient leads to a multiplicity of potential resource requirements often consumed in sequence and with varying degrees of urgency Patients are also able to refuse treatment lobby for a different type of treatment or simply fail to show up for treatment Finally the dire consequences sometimes resulting from untimely access lead to much lower tolerances with regards to meeting performance targets All these complexities make for significant challenges when seeking to plan capacity in the health care setting 1 Average Delay It referred to the number of days between the onset of symptoms and the first consultation with the doctor 2 Utilization It is the use of managed care techniques such as prior authorization that allow payers particularly health insurance companies to manage the cost of health care benefits by assessing its appropriateness before it is provided using evidencebased criteria or guidelines 3 System See Answer

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