The table below gives some operational statistics for two hospitals located in the same community. Use the table to answer the following questions.

  1. Calculate the following measures for each hospital (wherever appropriate, calculate the measure for each pay type). Discuss the meaning and significance of each measure and point out the differences between the two hospitals.
    1. Hospital capacity
    2. ALOS
    3. Occupancy rate
  2. Operationally, which hospital is performing better? Why?
  3. Do you think the nonprofit hospital is meeting its community benefit obligations in exchange for its tax-exempt status? Explain.
  4. Do you think the hospitals have a problem with excess capacity? If so, what would you recommend? In your answer to this question, please consider how hospital governance may impact the ability of an administrator to make changes.