From: Waiting time distribution in public health care: empirics and theory
\(g(k_{d,s})= a_{d,s}{k_{d}^{3}} + b_{d,s}{k_{d}^{2}} + c_{d,s}k_{d}\) | Utility from treating k patientswith duration d & severity s |
where for the case of low severity: | parameters of the cubic utilityfunction for low severity |
a d,1=−0.0002+0.0001/d | |
b d,1=0.02−0.01/d | |
c d,1=2+5/d | |
and for the case of high severity: | parameters of the cubic utilityfunction for high severity |
a d,2=0.9(−0.0002+0.0001/d) | |
b d,2=0.02−0.01/d | |
c d,2=3+5/d | |
c(k d,s )=ρ d,s k d,s | Cost from treatments at durationd and severity s |
where ρ d,1=20/d 2 | parameters of the linear duration& severity cost function |
and ρ d,2=30/d | |
\(c(k)= \tau (k-\overline {k})^{2}\) | Scale cost of the total number ofpatients treated |
where \(\bar {k}=900\) | hospital’s capacity in terms ofnumber of patients |
τ=10 | sensitivity of cost to deviationsfrom full capacity \(\bar {k}\) |
B=13500 | Hospital’s budget |
Z=1200 | Potential demand for healthcare |
θ =50 | Sensitivity of inflow to expectedwaiting time |
δ 1 = 0.7 | Proportion of the milderdiagnosis (s=1) |
q = 36 | Maximum allowed waiting time |