Capacity Control of Revenue Management in Wards of Community Hospital

Abstract

Revenue management is a sophisticated form of supply and demand management that helps a firm maximize revenue by balancing pricing and inventory controls. Although most revenue management research has been concentrated in the airline and hotel industries, the operating characteristics that make revenue management applicable to those industries are duplicable in other service organizations, including some segments of hospitals. This article makes research on capacity control in wards of community hospital, and sets up a tow-class single capacity control model which accords with mission of community hospitals. The real value of the parameters in this model is generated based on the data collected from the surveys targeting the inpatients of Tsinghua community hospital, and the optimal reserve capacity is worked out according to the model and the parameters