Abstract
This paper analyzes theoretically and empirically SMSA differences in occupancy rates in short-term general hospitals. Because of the randomness of shortrun demands for admission to hospitals, occupancy rates are greater, the greater the admission rate, the larger the population, and the fewer the hospitals in the SMSA. Occupancy rates are higher where a greater proportion of the population is black and where the winters are colder, both due to longer hospital stays. More beds per capita lowers the occupancy rate. The efficiency of bed use could be increased by greater coordination among hospitals.
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