Forecasting Patient Volume for a Large Hospital System: A Comparison of the Periodicity of Time Series Data and Forecasting Approaches

Abstract

Managing a large hospital network can be an extremely challenging task. Management must rely on numerous pieces of information when making business decisions. This chapter focuses on the number of bed days (NBD) which can be extremely valuable for operational managers to forecast for logistical planning purposes. In addition, the finance staff often requires an expected NBD as input for estimating future expenses. Some hospital reimbursement contracts are on a per diem schedule, and expected NBD is useful in forecasting future revenue.Two models, time regression and autoregressive integrated moving average (ARIMA), are applied to nine years of monthly counts of the NBD for the Rhode Island Hospital System. These two models are compared to see which gives the best fit for the forecasted NBD. Also, the question of summarizing the time data from monthly to quarterly time periods is addressed. The approaches presented in this chapter can be applied to a variety of time series data for business forecasting.

Citation

Kennedy, K., Salzillo, M., Olinsky, A. and Quinn, J. (2013), "Forecasting Patient Volume for a Large Hospital System: A Comparison of the Periodicity of Time Series Data and Forecasting Approaches", Lawrence, K.D. and Klimberg, R.K. (Ed.) Advances in Business and Management Forecasting (Advances in Business and Management Forecasting, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 33-44. https://doi.org/10.1108/S1477-4070(2013)0000009006