The Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June:   April    May    June    Admitted patients   1,440     1,860     2,250   Average length of stay per patient   4.0  days   3.5  days   3.0  days The hospital has 200 rooms. One hundred rooms are private and have a single bed per room. The other hundred rooms are semi-private with two beds per room. a. Determine the number of in-patient days for each month.     Number of in-patient Days   April   fill in the blank 1      May   fill in the blank 2      June   fill in the blank 3        b. Determine the available bed days for each month.     Available Bed Days   April   fill in the blank 4      May   fill in the blank 5      June   fill in the blank 6        c. Determine the occupancy rate for each month.     Occupancy Rate   April   fill in the blank 7 %    May   fill in the blank 8   June   fill in the blank 9

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
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Chapter15: Introduction To Managerial Accounting
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The Valley Hospital measures the in-patient occupancy of the hospital by determining the number of patient days divided by the number of available bed days in the hospital for a time period. The following in-patient data are available for the months of April, May, and June:

  April    May    June   
Admitted patients   1,440     1,860     2,250  
Average length of stay per patient   4.0  days   3.5  days   3.0  days

The hospital has 200 rooms. One hundred rooms are private and have a single bed per room.
The other hundred rooms are semi-private with two beds per room.

a. Determine the number of in-patient days for each month.

    Number of in-patient Days  
April   fill in the blank 1     
May   fill in the blank 2     
June   fill in the blank 3     

 

b. Determine the available bed days for each month.

    Available Bed Days  
April   fill in the blank 4     
May   fill in the blank 5     
June   fill in the blank 6     

 

c. Determine the occupancy rate for each month.

    Occupancy Rate  
April   fill in the blank 7 %   
May   fill in the blank 8  
June   fill in the blank 9  

 

d. Based on the occupancy rates, interpret the results?
The occupancy rate   from April to May and again from May to June. This suggests the hospital bed capacity is   over time. A closer examination of the data reveals that the average length of stay is  , while the number of admissions is  . The average length of stay may be   because of greater efficiency in delivering health care, assuming no change in treatment mix being provided over the three months. This potential improvement provides greater capacity to accept new patients, as can be seen from the three-month data. Thus, the   length of stay and greater occupancy are both contributing to the hospital’s ability to serve more patients per month.

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