Value management of diagnostic equipment with cancelation, no‐show, and emergency patients. (28th June 2016)

• Record Type: Journal Article
• Authors: Xiao, Yongbo; Zhu, Yan
• Is Part Of: Naval research logistics. Volume 63:Number 4(2016:Jun.)
• Page Start: 287
• Page End: 304
• Publication Date: 2016-06-28
• Subjects: revenue/value management -- health care management -- admission control -- appointment systems -- asymptotic optimality; Logistics, Naval -- Periodicals; Supplies and stores -- Periodicals; 359.07
• DOI: 10.1002/nav.21691
• Languages: English
• ISSNs: 0894-069X

Abstract

Abstract : Magnetic resonance imaging and other multifunctional diagnostic facilities, which are considered as scarce resources of hospitals, typically provide services to patients with different medical needs. This article examines the admission policies during the appointment management of such facilities. We consider two categories of patients: regular patients who are scheduled in advance through an appointment system and emergency patients with randomly generated demands during the workday that must be served as soon as possible. According to the actual medical needs of patients, regular patients are segmented into multiple classes with different cancelation rates, no‐show probabilities, unit value contributions, and average service times. Management makes admission decisions on whether or not to accept a service request from a regular patient during the booking horizon to improve the overall value that could be generated during the workday. The decisions should be made by considering the cancelation and no‐show behavior of booked patients as well as the emergency patients that would have to be served because any overtime service would lead to higher costs. We studied the optimal admission decision using a continuous‐time discrete‐state dynamic programming model. Identifying an optimal policy for this discrete model is analytically intractable and numerically inefficient because the state is multidimensional and infinite. We propose to study a deterministic counterpart of the problem (i.e., the fluid control problem) and to develop a time‐based fluid policy that is shown to be asymptotically optimal for large‐scale problems. Furthermore, we propose to adopt a mixed fluid policy that is developed based on the information obtained from the fluid control problem. Numerical experiments demonstrate that this improved policy works effectively for small‐scale problems. © 2016 Wiley Periodicals, Inc. Naval Research Logistics 63: 287–304, 2016