Mean-Variance Analysis of Medical Investment and Medical Products

Abstract

Today, deficit constitution is a serious problem in hospital management. In this paper the new methodology to decide investing budget under the consideration of its risk, which enables us to earn stable profit in the hospital management. Mean-variance analysis, which maximizes the expected profit and minimizes its risk, is employed in this paper. Neural network is applied to solve the mean-variance analysis. In this paper, the mean-variance model is transformed into the energy function to solve itself by a Boltzmann machine, and the neural approach can provide us with highly approximate solution. As an explanatory example, we discuss 1)how to distribute the budget over a virtual hospital group which consists of the main hospital, several subordinate hospitals, and 2)how to decide the production of medical products in manufacturing.