Uncertain demand, the structure of hospital costs, and the cost of empty hospital beds

摘要: Abstract In this paper we reformulate the theory of cost and production to take account uncertain demand facing a firm. reformulated duality between no longer obtains, distribution parameters enter function as well traditional outputs input prices. We then estimate short run for hospital using data from national sample over 5000 hospitals years 1983–1987. The model is strongly rejected in favor model. This used calculate empty beds, controlling effect on structure costs. an bed calculated $36,443 1987 dollars. that one percent decrease number beds would costs by slightly one-third percent. Increasing occupancy rate average 1992 level (65 percent) back 1980 (76 estimated save $2 million, or 9.5