[Answered]: Northpark University Hospital wants to increase…

Northpark University Hospital wants to increase short-stay inpatient procedures offered by the surgical specialty division for its Medicare patient population. There are 3 procedures under consideration (DRG-1, DRG-2, and DRG-3). The division has excess capacity in terms of inpatient days, nursing hours, and surgeon hours available per month. The table below provides the net revenue generated and required resources for each additional case, as well as the amount of excess capacity regarding those resources.