Theoretical Analysis And Application Study On Revenue Management In Community Hospitals

Revenue Management, which is also called"Yield Management", is a theory that synthesizes operational research, game theory, statistics and management to optimize the enterprises'revenue by means of demand forecasting, optimizing, pricing and capacity control. It dates back to the deregulation of the U.S. aviation industry in the late 1970's, and was widely used at that time.As a result of the successful application of Revenue Management in aviation industry, more and more industries have adopted Revenue Management and reaped immense profit by utilizing it.Community Healthcare is a large-sized industry in modern society, whose prospect of implementing Revenue Management has drawn the attention of a great number of foreign scholars. Domestically, due to the early development stage of the research on Revenue Management, relevant research is limited in aviation, hospitality, and other few industries that are intensively studied by foreign scholars. However, as the reformation on domestic healthcare industry carries on and the private capital gets the accessibility to this sector, the conditions for domestic community healthcare to apply RM are going to be fulfilled and the future is even brighter.This article first sets the Tsinghua community hospital as the research target, and establishes a framework of applying Revenue Management in community heathcare industry through real-field survey and data collecting. This framework is divided into four parts: demand forecasting, overbooking, pricing and capacity control.Next the article makes further research on capacity control and sets up a two-class single capacity control model and a multi-class capacity control model which accords with community hospitals. The real value of the parameters in tow-class capacity control model is generated based on the data collected from the surveys targeting the inpatients of Tsinghua community hospital. Then we work out the best capacity controlling strategy. Based on the two-class capacity control model, we researched multi-class capacity control model in community hospitals, which is an expansion model of the classic multi-class capacity control model. Then we selected a group of parameters and conducted a Monte Carlo simulation using the multi-class capacity control model. At last we made parameter analysis sensitivity analysis of the model.The results of this article could be directly applied to community healthcare information management, health policy making and the development of related software. It also plays as a reference for the following research on this specific subject.