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Hospitals, much like hotels, build out for occupancy as a primary KPI. Both run through occupancy calculations in planning and development, but hospitals have an advantage as they can manufacture need—hotels can’t.
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“Mrs Jones, we need to keep you for observation” isn’t flying at the Hilton—mostly because it’s on your dime.
If Hilton gave you a free night however, you’d probably stay, all things considered.
Hospitals can manufacture need with those words and your insurance card.
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If Hilton gave you a free night however, you’d probably stay, all things considered.
Hospitals can manufacture need with those words and your insurance card.
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That’s why KPI for hospital occupancy (especially ICU/NICU/CICU beds in particular) is built or added to maintain 75%-85% “occupancy”.
The overall “capacity” of a hospital is considered in planning and development, but occupancy drives capacity.
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The overall “capacity” of a hospital is considered in planning and development, but occupancy drives capacity.
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You don’t pay Apple another $300 for 512GB of storage on your iPhone 12 Pro Max because it’s nice to have. You get it because you have 250GB of photos/videos, 50GB of music, and know that your storage needs will grow—just as your 1TB of cloud storage tells you that it will.
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So, if a hospital built 2x the amount of beds as were needed for their area, one of two things will happen: (i) the beds will miraculously fill with patients to cover operating costs (by manufacturing the need); or (ii) the hospital will file for bankruptcy.
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This is why the mean occupancy level of your local/regional ICU should be part of the story when reporting on hospital capacity.
If all you hear is that your hospital is at 90% “capacity”, that isn’t the whole story. It’s simple fear mongering.
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If all you hear is that your hospital is at 90% “capacity”, that isn’t the whole story. It’s simple fear mongering.
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Your local/regional hospital was built to maintain 75%-85% occupancy. That means, at any given point in time, it should also (ideally) be running at 75%-85% capacity.
Remember though, “capacity” isn’t “occupancy”.
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Remember though, “capacity” isn’t “occupancy”.
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In winter months, ICU occupancy is closer to 90% because of respiratory illness; whereas, the birthing suites may be at 75% occupancy.
Conversely, in the summer months, ICU occupancy is around the mean of 75%; whereas, the birthing suites are closer to 90% occupancy.
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Conversely, in the summer months, ICU occupancy is around the mean of 75%; whereas, the birthing suites are closer to 90% occupancy.
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However, neither of those situations mean your hospital is at 90% “capacity”.
So, the next time you hear/read that your hospital is at “XX% capacity”, remember what they’re intentionally not saying to frighten you.
Namely that last year, your local ICU occupancy was ±90%.
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So, the next time you hear/read that your hospital is at “XX% capacity”, remember what they’re intentionally not saying to frighten you.
Namely that last year, your local ICU occupancy was ±90%.
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