Health network mergers and hospital re-planning

• Published in: The Journal of the Operational Research Society Vol. 61; no. 2; pp. 275 - 283
• Main Authors: Güneş, E D, Yaman, H
• Format: Journal Article
• Language: English
• Published: London Taylor & Francis 01.02.2010; Palgrave Macmillan; Palgrave Macmillan UK; Taylor & Francis Ltd
• Subjects: Acquisitions & mergers; Applied sciences; Biological and medical sciences; Business and Management; Case-Oriented Paper; Case-Oriented Papers; Computerized management (medical records, files, hospital management); Computerized, statistical medical data processing and models in biomedicine; Cost allocation; Cost control; Cost efficiency; Data envelopment analysis; Distribution costs; Efficiency; Exact sciences and technology; Health and social institutions; Health services; Hospital beds; Hospital costs; hospital networks; hospital planning; Hospital units; Hospitals; Integer programming; Management; Mathematical programming; Medical sciences; merger and acquisition; Minimization of cost; Operational research and scientific management; Operational research. Management science; Operations research; Operations Research/Decision Theory; Physicians; Portfolio theory; Public health. Hygiene; Public health. Hygiene-occupational medicine; quality constraints; Quality of service; Resource allocation; Resource costs; Studies; Supply chains; Total costs; Transportation costs; Travel expenses; Turkey; quality constraints; hospital networks; resource allocation; merger and acquisition; hospital planning; Health insurance; Costs; Mergers and Acquisitions; Firm development; Resource allocation; Hospital management; Modeling; Integer programming; Stock exchange; Capacity constraint; Firm management; Hospital; Planning; Firm strategy
• DOI: 10.1057/jors.2008.165
• ISSN: 0160-5682

This paper presents an integer programming formulation for the hospital re-planning problem which arises after hospital network mergers. The model finds the best re-allocation of resources among hospitals, the assignment of patients to hospitals and the service portfolio to minimize the system costs subject to quality and capacity constraints. An application in the Turkish hospital networks case is illustrated to show the implications of consolidation of health insurance funds on resource allocations and flow of patients in the system.