Economic Models - Convex Optimization

Administrative and miscellaneous expenses per patient:
Health Service Management 159
X 35 + d − 35 − d+ 35 = 32.1.
Variable X 36 depicts total per patient expenses at the final year.
X 36 − (X 32 + X 33 + X 34 + X 35 ) + d − 36 − d+ 36 = 0.
(9d)
(9e)
3.2.5. Other Expected Expenses
Installation of the IVR system.
Computers and server replacement.
X 37 + d − 37 − d+ 37 = 600.
X 38 + d − 38 − d+ 38 = 400.
(10a)
(10b)
The insurance funds.
From Table 2, we see that the average expenses for personnel insurance
amounts to 19% of the total employees’ salary. This is represented by the
following constraint, taking into account the variable X 21 .
X 39 − 0.19X 21 + d − 39 − d+ 39 = 0
Depreciation, laboratory, fixed and other expenses
X 40 + d40 − − d+ 40
= (60,000 + 180,000 + 80,000). (10d)
To sum all other expenses, I introduce the following relation.
X 41 − (X 37 + X 38 + X 39 + X 40 ) + d − 41 − d+ 41 = 0.
(10c)
(10e)
3.2.6. Total Expenses
It is already mentioned that I introduce the variable X 43 in order to sum up
total expenses, in the following way.
X 42 − (X 21 + 3625X 36 + X 41 ) + d42 − − d+ 42
= 0. (11)
3.2.7. Total Gross Profit
The gross profit achievement as set by the decision maker, may be introduced
in the following way.
3625X 43 − X 42 + d43 − − d+ 43
= 750,000 (12)