Freedonia contains some community hospitals and an academic medical center, staffed by the
most experienced physicians. All the hospitals are operating at near capacity. The table below
shows 30-day mortality outcomes (the fractions of patients who die) for otherwise identical
patients seen at the two types of hospitals.
Academic Center Community hospital
High risk patient 30% 32%
Low risk patient 5% 6%
Fredonia is trying to decide where to send high-risk and low-risk patients. It is also considering
funding a training program that will improve outcomes for high risk patients but can be
conducted at only one of the hospitals. Where should it deploy its resources?