Surgical Capacity Sharing and Cooperation in an Integrated Hospital System

In this paper, we address a surgery capacity sharing problem with multiple hospitals, and formulate a model where hospitals who have their own capacity (the Operating Room) locally. Each hospital has several surgery teams facing random demands and seeks appropriate capacities to accommodate the demands, so that its total profit is maximized. We first study the allocation of available surgery capacities in the systems and exploit its resemblance with the newsvendor model. Then we expect to present a approach to study the cooperative games among the hospitals, and formulate it as a stochastic linear programming problem.