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Article: Linear programming a useful tool in case-mix management. (column)
- Article from:
- Healthcare Financial Management
- Article date:
- June 1, 1989
- Author:
CopyrightCOPYRIGHT 1989 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Linear programming a useful tool in case-mix management
A mathematical model known as linear programming can be used by healthcare managers to derive an optimal case mix for diagnosis related groups (DRGs).
Linear programming is a mathematical programming and optimization technique that has been widely used by business and industry for many years. It involves allocating scarce resources on the basis of a given criterion of optimality. Most often, this criterion is either maximum margin or minimum cost.
A classic application of linear programming in manufacturing is the "product mix" problem. In this problem, the objective is to determine the ...