Issue №12. September 2007

Mathematical Model of a Stationary Medical Institution Finances: An Instrument for Administrative Decision-making

Senior lecturer, National Institute of Public Health, Ministry of Health, Republic of Armenia.

The author proposes a mathematical model for making administrative decisions on deviations from the budget. The model allows to experiment studying the impact of a decision without harming the real institution if the decision turns out to be wrong. The model allows to monitor the experiment on every stage of the process. The probability threshold diagram and cost graph allows the administrator to adjust the price level and determine when it is possible to introduce discount programs. The model also sets the standards for efficiency evaluation which is useful for the overall evaluation of the institution.

Keywords

Budget, financial model, medicine, mathematics.