1. 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
2. Operationally, which hospital is performing better? Why?
3. Do you think the nonprofit hospital is meeting its community benefit obligations in exchange for its tax-exempt status? Explain.
4. Do you think the hospitals have a problem with excess capacity? If so, what would you recommend? In your answer to this question, please consider how hospital governance may impact the ability of an administrator to make changes.

Table

Calendar Year 2016	Nonprofit Community Hospital (A)	Proprietary Community Hospital (B)
Number of Beds in Operation	320	240
Total Discharges	12,051	9,230
Medicare	5,130	3,876
Medicaid	3,565	2,118
Private Insurance	3,356	3,236
Total hospital days	72,421	51,684
Medicare	36,935	26,359
Medicaid	23,175	12,921
Private Insurance	12,311	12,404
Total inpatient revenues	$ 45,755,000	$ 35,800,000
Dollar value of community benefits	$ 5,000,000	$ 3,500,000