Hospital Resource Allocation

A hospital has 500 beds and serves a population of 250,000 people. The hospital's annual budget for medical supplies is $2.5 million. Last year, the hospital treated 45,000 patients and had an average length of stay of 4.2 days. The hospital is considering implementing a new telemedicine program that would cost $500,000 to set up and $200,000 annually to maintain.