Strategic Capacity Management:

Hospital Capacity During Pandemic

DWINANDA RIZAL NUGROHO

TRI HANDOKO

BUDY S RAHARJA

R I O S YA H P U T R A
 Covid-19 Outbreak
On January 30, 2020, the World Health
Organization (WHO) declared the
COVID-19 outbreak a Public Health
Emergency of International Concern
(PHEIC)
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July 11, 2020, more than 12.5 million
March 11th, 2020. As cases spread around
COVID-19 cases occurred in 188
the world, the WHO classified COVID-19
countries, resulting in over 560 000
as a pandemic.
deaths.
 Correlation with Hospital Capacity?

In a large medical center in New York City (NYC) :

 23.6% of the first 1000 COVID-19 patients were admitted or transferred to an ICU.
 COVID-19 patients in these ICUs required very long length of stays (LOS) with a median of 23 days.
 Furthermore, the challenges extended beyond bed capacity;
 57.6% of patients admitted to ICU needed a ventilator, and 35.2% needed dialysis. 
 Naturally, concerns were reported that deaths due to shortages of ventilators and dialysis machines
could have been avoided if hospitals had enough critical equipment and personnel to meet the needs of
COVID-19 patients. 

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 How about in Indonesia

If we compare the condition with Indonesia, however, it’s not an easy task to expand the hospital
capacity within a short term period.

 Although the government is instructed via the Ministry of Health to increase the capacity to be 30-
40%, still, There are some major consideration for a referral hospital to improve the capacity such
as:
 Facilities (Only 490 out of 2900 hospitals have complete facilities)
 Infrastructure (Building, Rooms, etc)
 Human resources – Health workers availability
 Health equipment availability (Ventilator, Dialysis machines, PPE, etc)

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 Capacity Planning in Services vs Manufacturing
TIME
Unlike goods, Hospital services cannot be stored for later use. As such, in-services, we must consider time as one of our
supplies. The capacity must be available to produce a service when it is needed.

LOCATION
In face-to-face settings, the service capacity must be located near the customer. In manufacturing, production takes
place, and then the goods are distributed to the customer. With services, however, the opposite is true. The capacity to
deliver the service must first be distributed to the customer (either physically or through some communications
medium, such as the telephone), then the service can be produced.

VOLATILITY OF DEMAND
The volatility of demand on a service delivery system is much higher than that on a manufacturing production system
for three reasons.
First, as just mentioned, services cannot be stored. This means that inventory cannot smooth the demand as in
manufacturing.
The second reason is that the customers interact directly with the production system—and these customers often have
different needs, will have different levels of experience with the process.
The third reason for the greater volatility in service demand is that it is directly affected by consumer behaviour.
Influences on customer behaviour ranging from the weather to a major event can directly affect demand for different
services.
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Capacity Utilization vs Service Quality

Planning capacity levels for services must consider

the day-to-day relationship between service
utilization and service quality. Exhibit 5.6 shows a
service situation using waiting line terms (arrival
rates and service rates). The term arrival rate refers to
the average number of customers or (patients in this
case) that come to a hospital during a specific period
of time or event like the current pandemic situation.
The service rate is the average number of patients
that can be processed over the same period of time
when the Hospital is operating at maximum capacity.
The best operating point is near 70 percent of the
maximum capacity.
CONCLUSION
Although capacity planning in services is subject to many of the same
issues as manufacturing capacity planning and facility sizing can be
done in much the same way, there are several important differences.
Service capacity is more time- and location-dependent, it is subject to
more volatile demand fluctuations, and utilization directly impacts
service quality.
 THANK YOU
 We are in the class of Operation
Management

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