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On the socially optimal size of a life-saving facility
Authors:S.Abraham Ravid  Amiram Gafni
Affiliation:

Haifa University, Haifa, Israel

Technion, Israel Institute of Technology and Dept of Clinical Epidemiology Biostatistics, Mc Master University, 1200 Main Street W., Hamilton, Canada, L8N 3Z5

Abstract:The paper examines the simultaneous problem of finding an optimal size of an intensive care unit and an optimal amount of social investment in preventive medicine. The “demand” for ICU services is assumed stochastic. The approach used is to minimize social costs involved in operating the facility and social loss stemming from deaths of untreated patients.

After deriving the optimality conditions the results are applied to recent British data

Keywords:
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