From: Waiting time distribution in public health care: empirics and theory
\(g(k_{d})= a_{d}{k_{d}^{3}} + b_{d}{k_{d}^{2}} + c_{d}k_{d}\) | Utility from treating k patients with duration d |
where \(a_{d} = -0.0002 + \frac {0.0001}{d}\) | parameters of the cubic utility function |
\(b_{d} = 0.02-\frac {0.01}{d}\) | |
\(c_{d} = 2 + \frac {5}{d}\) | |
c(k d )=ρ d k d | Cost from treatments at duration d |
where \(\rho _{d} = \frac {20}{d^{2}}\) | parameter of the linear duration cost function |
\(c(k)= \tau (k-\overline {k})^{2}\) | Scale cost of the total number of patients treated |
where \(\bar {k}=900\) | Hospital’s capacity in terms of number of patients |
τ=10 | sensitivity of cost to deviations from full capacity \(\bar {k}\) |
B=7000 | Hospital’s budget |
Z=1200 | Potential demand for healthcare |
θ =50 | Sensitivity of inflow to expected waiting time |
q = 36 | Maximum allowed waiting time |