Resource allocation decision making in the military health system

The necessity to efficiently balance and re-allocate system resources among hospitals in a hospital network is paramount, especially as health systems experience increasing demand and costs for health services. In this paper, we proffer a resource allocation-based optimization model that adjusts resources (system inputs) automatically, which provides decision makers (such as health care managers and policy-makers) with a decision-support tool for re-allocating resources in large health systems that are centrally controlled and funded, such as the Military Health System. In these systems, inputs are fixed at certain levels and may only be adjusted within medical treatment facilities, while outputs must be maintained. We provide a mathematical formulation and example solutions from a case study using real-world data from sixteen U.S. Army hospitals. We also find utility in the use of multi-start evolutionary algorithms to store multiple optimal solutions for consideration by decision makers.