Posted: March 3rd, 2014

Oak Leaf Medical Center

Oak Leaf Medical Center

Jaylene Pinkston, the new Administrator at Oak Leaf Medical Center is facing a major expansion. The area in which the facility is located is growing very quickly and is experiencing capacity limitations. Both the Geriatric and Pediatric Units exceed their capacity on a regular basis. The state has very strict limits concerning such issues.

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Ms. Pinkston must make a presentation to the Board of Trustees in two days based on the following data:

Geriatrics 28 29 3.2 $75,000

Pediatrics 21 24 5.6 $30,000

The Licensing Guideline states that a facility may exceed unit capacity, but that it may not occur more than 5% of the time.

What is the minimum amount of money that Ms. Pinkston should request from the Board of Trustees to ensure the facility can expand the two wards and meet minimum licensing guidelines?

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To determine the number of additional beds needed, one needs to look at each unit separately; and the basic question is, how many beds do I need so that I will exceed the number of beds in the ward only 5% of the time. That’s where the normal distribution comes in.

Another tip…once you find the number of beds, you are not done!! You need to determine the number of new beds to add (if any) based on the current maximum capacity.

Remember that z = (y – mean)/stand. dev.

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