a) Calculate the following measures for each hospital (wherever appropriate, calculate the measure for each pay type). Discuss the meaning and significance of each measure, and point out the differences between the two hospitals.

(1) Hospital capacity

(2) ALOS

(3) Occupancy rate

(b) Operationally, which hospital is performing better? Why?

(c) Do you think the nonprofit hospital is meeting its service obligations to the community in exchange for its tax-exempt status? Please give reasons for your answer.

(d) Do you think the hospitals have a problem with excess capacity? If so, what would you recommend?