Case Study: Arnold Palmer Hospital

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Case Study: Arnold Palmer Hospital
Arnold Palmer Hospital
One of only six hospitals in U.S specialized in health

care for women and children. Patient from 50 states and more than 100 countries. Focuses is delivery of babies. Capacity per year is 6,500 births with 281 beds.

Arnold Palmer Hospital
Demand increased steadily and achieved 14,634 birth on

2008. 35 Planning Teams study on capacity expansion included:
1) 2) 3) 4) 5) 6) 7)

Specific forecasts Service transfer to new facility Service remain in existing facility Staffing needs Capital equipment Proforma accounting data Regulatory requirement

Q1: Given the capacity planning discussion in the text (see Figure S7.6) what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand? Answer: The approach that is being taken toward matching capacity to demanding is the Leading Strategy  Management leads capacity incrementally  Management could also add new capacity which allow it to stay ahead of demand

New Capacity Demand

Expected demand

1 2 3 Time (periods)

Q3:Use regression analysis to forecast the point at which Swanson needs to "build out" the top two floors of the new building, namely, when demand will exceed 16,000 births.

Y(Year)=a +b(x) Y=1987.8356+0.0014x(16000)

=2010.34
Conclusion, regression analysis show 2010 Swanson able achieve 16,000 births and 2011 demand will exceed 16,000 births.

How we get the calculation? Next slide regression analysis ..

Regression Analysis Y(Year)=a +b(x) r2=0.9720 show the relationship between birth & year show a strong

So, change of year will give a positive impact on total of births or vice versa.
Intercept(a) Births(b) Coefficients Standard Error 1,987.8356 0.6971 0.0014 0.0001 t Stat 2,851.4554 20.4132 P-value 0.0000 0.0000 Lower 95% 1,986.3167 0.0013 Upper 95% Lower 95.0% Upper 95.0% 1,989.3545 1,986.3167 1,989.3545 0.0016 0.0013 0.0016

x=16,000; a=1987.8356;b=0.0014 Y=2010.34

a is a constant ,b is the slope (also

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