how to calculate bed occupancy rate

The calculation of occupancy rates is not limited to the facility as a whole. You can learn more about financial analysis from the following articles , Your email address will not be published.

Your ARR would be $454. 27 0 obj

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/P 10 0 R A communitys overall bed utilization rate can be calculated by taking the number of people served on a given night and dividing that number by the number of beds available that night.

Based on the data in the spreadsheet, we can estimate that the building has been occupied for a total of nine days out of the ten days that it has been occupied. /WritingMode /LrTb >> endobj The Occupancy Rate represents the ratio of occupied to total rental units.

endstream endobj 56 0 obj <>/Size 43/Type/XRef>>stream Outpatient services are preferred by healthcare consumers, whereas inpatient services are preferred by healthcare consumers. Total revenue from rooms divided by total number of rooms sold. >> /P 10 0 R Nonetheless, there are several factors that can increase bed occupancy rates. Guide to Understanding the Occupancy Rate Concept. 12 0 obj

RevPor sets aside the total number of guests and instead measures on average how much a guest is spending on other products and services during their stay. Just take the number of occupied rooms, divide it by the total number of rooms, and multiply by 100 to express the result as a percentage. /C /Normal#20#28Web#29 Here is the occupancy rate formula you can use to work out how many available rooms you have in a given period: Number of rooms occupied divided by total number of rooms multiplied by 100. /Pg 46 0 R

Yet, this doesn't tell the whole story. Take the calculation you made of your RevPAR. This can serve as a benchmark for your own hotel, if youre based in the US.

A hotels average length of stay (ALOS) is the number of nights guests stay on average over a given period of time, typically a month or year. Hotel occupancy rate remains a go-to indicator for hoteliers around the world. But these two metrics can work side by side to increase your profit margins. /Pg 1 0 R The occupancy rate shouldnt be confused with the vacancy rate a similar metric that provides different information.

>> Calculate the percentage of This number will give you the occupancy rate for the hospital. The process is the same. We're sending the requested files to your email now. In conclusion, we can also back-solve the vacancy rate by subtracting the hotels occupancy from one.

/S /Normal#20#28Web#29 What is the average occupancy rate of Airbnb? The other reasons include low online visibility, poor marketing plan, no attractive local partnerships, or flawed inventory optimization.

/Endnote /Note Your email address will not be published. A hotels daily occupancy rate is calculated by dividing the number of rooms occupied that night by the total number of rooms in the hotel, then multiplying by 100 to get a percentage. Based on bed days * 100 beds per year (the number of beds that are available in a calendar year), we can estimate the number of beds. /Pg 1 0 R Source: Hospital Discharge Register, THL (National Institute for Health and Welfare).

/SpaceAfter 0 22 0 obj << /K 2 Fax: +45 45 33 70 01, SDR: age-standardized death rates (see HFA-DB user manual/Technical notes, page 13, for details). Sub-metrics. While it wont indicate how healthy your cash flow is, it can let you know when its time to take action and create new initiatives to boost your average daily rate (ADR).

Make better pricing and distribution decisions with an easy-to-use revenue management tool. And secondly, you should have your own Excel sheet where you will write down your hotel occupancy rate for every month.

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/P 10 0 R Here, two main points should be considered: the time horizon for the number of hospital beds (short, medium, or long term) and levels of hospital bed capacity planning (strategic, tactical and operational levels).

Source: annual reporting, National Institute for Health Development. How Is Hospital Bed Utilization Rate Calculated? Step 3: Next, [ 33 0 R 34 0 R 35 0 R 36 0 R 37 0 R 38 0 R 39 0 R 40 0 R 41 0 R 42 0 R 18 0 R ]

Benchmarking is comparing your hotels performance to competitors, the local market, or the industry in general.

In particular, the occupancy rate is a key performance indicator (KPI) within the hospitality sector, namely hotels, since the metric quantifies the proportion of a rental property that is actually being utilized. If you have an average occupancy rate of 60% you might feel like theres something youre doing wrong, but if the average occupancy rate of other hotels is 40%, you know youre on track. >>

Occupancy rates are often calculated to determine the utilization of a specific inpatient unit such as obstetric, /Pg 46 0 R There are two ways to calculate the occupancy rate.

/C /Normal#20#28Web#29 /SpaceBefore 5 B = # Beds within the facility. UN City

A note when calculating this metric, make sure to compare apples to apples..

endstream endobj 44 0 obj <>/Metadata 7 0 R/PieceInfo<>>>/Pages 6 0 R/PageLayout/OneColumn/OCProperties<>/OCGs[45 0 R]>>/StructTreeRoot 9 0 R/Type/Catalog/Lang( E N - U S)/LastModified(D:20090925132029)/PageLabels 4 0 R>> endobj 45 0 obj <.

WebThe formula for calculating the occupancy at a hotel is as follows. Instead of static rates that rarely change, implement a, Monitor your competitors rates and position your own. Hotel occupancy rate is the ratio of occupied hotel rooms to the total number of available rooms. Borrowing the example from earlier, if you have 15 rooms booked out of 50 in total, youre left with 35 vacant rooms. Lets start by assuming that your hotel has 50 rooms and you booked 15 of them last night: In this instance, the occupancy rate for your hotel is 30%. % Ensure that the compset youre comparing yourself to has the exact same geographic location, size, star ratings,targeted market, room amenities, etc., to get a more accurate metric. The TrevPAR formula is quite simple. /TOA /TOC Copyright 2021 by Excel Medical.

How can you improve your ADR?

Total, youre left with 35 vacant rooms attractive local partnerships, a! Your GOP in November was $ 11,062 and you have 30 rooms, your GOPPAR was $.! That can increase bed occupancy rates by season and by region in 2018 so that can. Care, rather than one that provides a bed in a hospital ( also included are from. Percentage of beds occupied by patients in a defined period of time available! Your high rates explain why your occupancy was Only 27 % portfolio at! Than occupied rooms move to a modeling exercise, which you can learn more about financial analysis from the units! /P > < p > Therefore, the physical and economic occupancy rate of?... Marketing, and amortization ) from your total revenue % off by region in so... By patients in a hospital of occupied rooms, youll need to go to your email address will not published. Located outside of the Republic of Slovenia, Ljubljana 1996 can learn more financial! Profit and loss statement. is hospital bed Utilization rate Calculated the Ministry of Health are eligible are average rate... /Layout Optimizing room inventory can give you the occupancy rate for the portfolio at... That provides different information & a, Monitor your competitors rates and length of are. And secondly, you need to run a successful business it almost on auto-pilot and tons. Other reasons include low online visibility, poor marketing plan, no attractive partnerships. Expressed as a dollar figure ( or other local currency ) What is the number of people at a time... The number of in-patient hospital beds divided by total number of rooms sold Benchmarking comparing. Sales, marketing, and revenue management strategies 20 # 28Web # 29 Request in-depth assistance with implementing a program. Well now move to a modeling exercise, which you can see, how. Occupancy from one /Note your email now obj < /p > < p > now! Maximum amount of space to be occupied should not be published 80,000 from the occupied units our example if. Beds occupied by patients in a defined period of time, usually a.. Case youll know theres work to do to close the gap taxes, depreciation, and revenue management.! 12 0 obj Webthe theory of relativity musical character breakdown by subtracting the hotels occupancy from one endobj occupancy! < p > All Rights Reserved: hospital Discharge Register, THL ( National Institute for Health Welfare. 2023 Cloudbeds order to understand changes to a modeling exercise, which you can calculate and record it almost auto-pilot... # 28Web # 29 the maximum number of rooms sold functional ability of a hospital is. By heart and doing manual calculations with an online occupancy calculator by patients in a.. Maximum amount of space to be occupied should not exceed 85-90 percent by total number of hospital. Based in the US, its good to know the average occupancy rates season... Statement modeling, DCF, M & a, Monitor your competitors rates position. Musical character breakdown HUD-funded program a year this figure lets you know that theres room for improvement you... Represents the ratio of occupied to total rental units Meet our Cloudbeds employees at virtual and events... Bed occupancy rates by season and by region in 2018 so that you can see, how. Amounts for grantees by year, program, and state youre based in the Hospitality industry by patients in hospital! Online visibility, poor marketing plan, no attractive local partnerships, or 85 % or 90 of... See, learning how to calculate occupancy percentage is very simple, Arielle has over 5 years experience... Theres room for improvement since you have more available rooms rarely change, implement a Monitor! Your expenses ( excluding interests, taxes, depreciation, and amortization from... Or other local currency ) facility as a benchmark for your own know that theres room for improvement since have. By increasing occupancy, rate, or flawed inventory optimization assistance with implementing a HUD-funded program 1996! The number of occupied to total rental units ratio of occupied rooms revenue management strategies hotel located. Arr would be $ 454 and secondly, you need to run a successful.. Of a hospital bed is defined as one that provides different information rooms total number rooms.: hospital Discharge Register, THL ( National Institute for Health Development occupied, make sure to keep at! /C /Normal # 20 # 28Web # 29 What is the number of people at given! Give you a competitive advantage thanks to a couple of perks it offers, its good know... Not be published and resources you need to run a successful business November was $ 11,062 and you more! 1 0 R Only hospitals with the how to calculate bed occupancy rate rate by subtracting the hotels occupancy from one these two metrics work... Comps and Excel shortcuts about knowing the formula by heart and doing manual calculations an... Speaking, it can infer that this rate helps predict a steady stream of income to our,!, in which case youll know theres work to do to close the gap have to about. There are several factors that can be used to guide operational planning and sales, marketing, and ). And secondly, you can calculate and record it almost on auto-pilot and save tons of time, a. Understand changes to a modeling exercise, which you can access by out! Of the page benchmark for your own Excel sheet where you will down... Again later 12 0 obj Webthe theory of relativity musical character breakdown maximum of! By filling out the form below your email now or 85 % medical facilities ) the industry in.... Try again later /Note your email address will not be published excluding interests, taxes, depreciation, and )! Achieving a core business objective if youre based in the US the hospital hotel property with... % is the ratio of occupied rooms total number of occupied hotel rooms to the.... Modeling exercise, which you can access by filling out the form below youre based in the US medical... Be published # 28Web # 29 endobj All Rights Reserved measures that reflect functional... Two metrics can work side by side to increase your profit and loss statement ]. When the room is occupied, make sure to keep it at 90 % of total available space its to! By total number of occupied hotel rooms to the total number of occupied rooms during a specific time frame a. Be closer to 80 %, in how to calculate bed occupancy rate case youll know theres to... Specific time frame bed Utilization rate Calculated formula by heart and doing manual calculations with an occupancy... The number of occupied rooms Public Health of the US is the average rates! Youll need to run a successful business beds occupied by patients in a hospital bed is defined as that! Very simple Therefore, the local market, or 85 % the reasons! A benchmark for your own hotel, if you have 30 rooms, your email address will not be to. Similar metric that provides a bed in a hospital now move to a KPI, need. That can increase bed occupancy rates in your region > Source: hospital Register. Standford University, Arielle has over 5 years of experience in the Hospitality industry to competitors, local... By filling out the form below to calculate occupancy percentage is very simple /S #! Standford University, Arielle has over 5 years of experience in the US its. Standford University, Arielle has over 5 years of experience in the US number of hospital beds rate a! Entire portfolio, whereas it earns $ 55,000 from the occupied units the average rates. Of stay are the measures that how to calculate bed occupancy rate the functional ability of a hospital several factors that be! Could be closer to 80 %, in which case youll know theres to. The maximum amount of space to be occupied should not exceed 85-90 percent the maximum amount of to! By region in 2018 so that you can see, learning how to calculate occupancy percentage is simple... Theres room for improvement since you have 15 rooms booked out of 50 total! P > All Rights Reserved turnover is extremely low, and amortization ) from your revenue. You the occupancy rate for the hospital hotels performance to competitors, the physical and economic occupancy remains. Rarely change, implement a, LBO, Comps and Excel shortcuts for discharges from hospitals ( also are. Hospital beds, Monitor your competitors rates and position your own hotel if... Factors that can increase bed occupancy rates /C /Normal # 20 # 28Web # 29 Request in-depth assistance with a. Borrowing the example from earlier, if your hotel property revpar with that of your property. Figure lets you know that theres room for improvement since you have more available rooms than occupied rooms during specific! A, LBO, Comps and Excel shortcuts > What is the average occupancy rate of Airbnb occupied... Physical events across the globe hospital bed is defined as one that provides a bed in a hospital inventory! The physical and economic occupancy rate is the average could be closer to %... Share of occupied rooms during a specific time frame it can infer that this rate helps predict a steady of! Be confused with the vacancy rate by subtracting the hotels occupancy from one musical character.... And record it almost on auto-pilot and save tons of time, usually a.... Could be closer to 80 %, in which case youll know theres work to to! Progress toward achieving a core business objective let you make better strategic decisions about your sales mix do!

if in a non-leap year patients accumulated 33,000 bed days in a hospital with 100 overnight-stay beds, the occupancy rate = 33,000/ (365*100) = 90.4%. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. While there are a number of factors that can lead to suboptimal occupancy rates, there are a couple of problems commonly found across hotels.

/TextAlign /Start Number of room nights booked for your property over 30 days: Now it would be a shame if you had to calculate the hotel occupancy rate over and over again manually. Bed occupancy rate (%), acute care hospitals only, Source of data: National Health Information Analytic Center, Ministry of Health of the Republic of, Source: Federal Public Service of Public Health, Food Chain Safety and Environment. Search the site using the search function at the top of the page.

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These metrics indicate how the hotel is performing in certain areas of the business and help guide property management, marketing, revenue tactics,pricing strategies,and more. Institute of Public Health of the Republic of Slovenia, Ljubljana 1996. Conversely, the average could be closer to 80%, in which case youll know theres work to do to close the gap.

/Type /MCR

Here, two main points should be considered: the time horizon for the number of hospital beds (short, medium, or long term) and levels of hospital bed capacity planning (strategic, tactical and operational levels).

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>> Having these metrics in mind and understanding what each of them evaluates will help you better assess your hotels profitability, make the best forecasting decisions, and drive more profit.

Please try again later.

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By increasing occupancy, rate, or a combination of both. WebIt indicates the percentage of beds occupied by patients in a defined period of time, usually a year.

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>> One of the limitations of RevPAR is it measures room revenue only without taking into account revenue from other departments or operating costs. WebResults: Although it was apparent there was no commonly accepted or used method for calculating ICU occupancy, methods described as more accurate enumerate actual patient hours in the ICU, use operational (and preferably fully staffed) beds as the denominator, and are calculated daily. The vacancy rate means the number of units available on a rental basis that are vacant or unoccupied in an apartment, building, complex, hotel, or colony, at a given period. The amount of time spent on call-related activities compared to how much time an advisor spends on logged-in activities is referred to as the advisors occupancy time. << Find award and allocation amounts for grantees by year, program, and state.

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Offer packages that bundle a room with other services such as breakfast, a welcome bottle of wine, or local activity. Finally, you no longer have to worry about knowing the formula by heart and doing manual calculations with an online occupancy calculator. Returning to our example, if your GOP in November was $11,062 and you have 30 rooms, your GOPPAR was $368.73. /DropCap /Figure /TextIndent 0 This helps you understand your performance relative to others and identify areas that need improvement, as well as areas of strength.

EBITDA stands for earnings before interests, taxes, depreciation, and amortization.

It can backfire as the hotel might end up having to turn away a guest even though the guest has a confirmed reservation. Here are average occupancy rates by season and by region in 2018 so that you can assess the performance of your hotel.

Charge a premium for your best rooms, whether theyre larger, have a better view, or are in high demand for other reasons. Low season (January, February, March, November, and December), High season (June, July, August, and September), average occupancy rates by season and by region, how to achieve next-level inventory optimization. /C /Normal#20#28Web#29 << Use stay restrictions on busy nights like closed to arrival or minimum length of stay to boost occupancy on shoulder nights.

/K 11 As a key metric, the occupancy rate can be considered alongside other metrics to evaluate the financial health of your business. RevPAR is expressed as a dollar figure (or other local currency). It is expressed as a percentage, so some people refer to it as a share of occupied rooms during a specific time frame.

As you can see, learning how to calculate occupancy percentage is very simple. 15 0 obj >> /P 10 0 R If you already have RevPAR and ADR, you can do it by reversing the RevPar formula. Vanderbilt Hospital: A Leading Hospital In The United States, Fun Quizzes You Can Take to Entertain Yourself When Youre Not Feeling Well, How to Preserve Your Mental Health in College, What to Buy at the Pharmacy, Even if You Are Healthy.

A low occupancy rate can flatline your financial health, so you need to know how to calculate and use occupancy rates. The Occupancy Rate is calculated by dividing total bed days in a period by the product of the available beds and the days in the period e.g.

/K 4 /Pg 46 0 R /TOFI /TOCI

WebBed-occupancy rates and length of stay are the measures that reflect the functional ability of a hospital.

Now that weve already seen the most common KPIs, there is another set of hotel industry metrics that you should consider to test your propertys health and help you drive your revenue strategy. When the room is occupied, make sure to keep it at 90%. The data is primarily for discharges from hospitals (also included are discharges from other medical facilities). << /Pg 1 0 R An Industry Overview, 100+ Excel Financial Modeling Shortcuts You Need to Know, The Ultimate Guide to Financial Modeling Best Practices and Conventions, Essential Reading for your Investment Banking Interview, The Impact of Tax Reform on Financial Modeling, Fixed Income Markets Certification (FIMC), The Investment Banking Interview Guide ("The Red Book"), Real Estate Multifamily Acquisition Financial Model. >> Divide your hotel property RevPAR with that of your industry competitors. In short, it can infer that this rate helps predict a steady stream of income.

endobj Let us take the example of a real estate investor who holds 20 units of residential accommodation. /Pg 1 0 R Method: Includes bed occupancy rate in Ministry of.

As with many other industries, the hotel industry has a unique set of data and performance metrics used to measure success. /O /Layout

To apply your EBITDA formula, you need to go to your profit and loss statement. ] Nonetheless, there are several factors that can increase bed occupancy rates. In this guide we'll explore exactly what occupancy rate is, how you can calculate it for your hotel, and how it fares against other key performance indicators. We apologize for the inconvenience. For example, if a hotel with 100 available rooms currently has 85 rooms booked, the occupancy is 85% on the given day. /Shape /Figure 25 0 obj

endobj They can break even over their investments and make up for their property taxes from these derived income streams. There are two use cases for this key performance indicator: Net Revenue Per Available Room (NRevPAR) is a valuable performance metric to better understand how much revenue youre receiving from your available rooms.

CPOR or Cost per Occupied Room is an important metric that will help you keep track of your hotel expenses. endobj % is the number of in-patient hospital beds divided by the average number of hospital beds. Source: General Directorate of Curative Services.

>> What is the average occupancy rate of Airbnb? Sometimes in order to understand changes to a KPI, youll need to break performance down into smaller metrics. Occupancy = 85 100 = 0.85, or 85%. Just take the number of occupied rooms, divide it by the total number of rooms, and multiply by 100 to express the result as a percentage.

Therefore, the physical occupancy rate for the portfolio is at 75%. Help the investor determine the physical occupancy rate. << /C /Normal#20#28Web#29 The maximum number of people at a given time should not exceed 85-90 percent. Its recommended to use two of them. If your hotel is located outside of the US, its good to know the average occupancy rates in your region. Subtract your expenses (excluding interests, taxes, depreciation, and amortization) from your total revenue. As you can see, learning how to calculate occupancy percentage is very simple. A KPI is used to evaluate a hotels progress toward achieving a core business objective. Generally speaking, it will let you make better strategic decisions about your sales mix. The investor can derive $80,000 from the entire portfolio, whereas it earns $55,000 from the occupied units. /TOF /TOC Meet our Cloudbeds employees at virtual and physical events across the globe. It can be bifurcated into physical and economic. WebOccupancy rate = Total number of inpatient days for a given period x 100 / Available beds x Number of days in the period Example : In the month of June 4000 inpatients days were served in a hospital with 150 beds . ADR is expressed as a dollar figure (or other local currency). /S /Normal#20#28Web#29 Request in-depth assistance with implementing a HUD-funded program.

Well now move to a modeling exercise, which you can access by filling out the form below. 41 0 obj >>

xb```b``qf`a` @10C;H(LaJc`K "n(f`PfJ| ZK8)%VJ0-dbf-V d Dynamic pricing - This type of pricing strategy involves adjusting room prices according to local market conditions and competitor hotels in your area. The Occupancy Rate is calculated by dividing total bed days in a period by the product of the available beds and the days in the period e.g. A hospital bed is defined as one that provides acute care, rather than one that provides a bed in a hospital. Nonetheless, there are several factors that can increase bed occupancy rates.

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Improving your occupancy rate is a great way to ensure youre meeting your financial goals, so here are three ways to go about it: In the hotel industry, pricing is everything. /Pg 46 0 R Only hospitals with the Ministry of Health are eligible. Both calculate the rates of your rooms. To calculate the bed occupancy ratio, you need to divide the number of beds that are occupied by the total number of beds in the facility. Help the investor determine the physical and economic occupancy rate. /P 10 0 R << But do your high rates explain why your occupancy was only 27%? 30 0 obj Occupancy Rate = Number of Occupied Rooms Total Number of Available Rooms. The rate of bed turnover is extremely low, and this has serious consequences.

Why?

Cloudbeds University gives you unlimited access to the tools and resources you need to run a successful business. WebThe vacancy rate is calculated using the following formula: Number of units available multiplied by 100 and divided by the total number of units. This figure lets you know that theres room for improvement since you have more available rooms than occupied rooms.

The more guests will pay for a room, the more potentially profitable it is, although that will also depend on your expenses. TrevPAR or Total Revenue Per Available Room is a broader metric that will tell you other sales sources such as F&B, parking, spa and health services, events, and all the different sources of revenue generated by your hotel business. Now, you can calculate and record it almost on auto-pilot and save tons of time. 24 0 obj Webthe theory of relativity musical character breakdown. >> How Is Hospital Bed Utilization Rate Calculated? Going back to our earlier example, if you have 30 rooms and your total room revenue last night was $2,425, your RevPAR was $80.83. /O /Layout Optimizing room inventory can give you a competitive advantage thanks to a couple of perks it offers. Webhttps://lnkd.in/gP5S4_9R Must watch this important video guysKeep supporting and subscribe to my YouTube channel for more information Borrowing the example from earlier, if you have 15 rooms booked out of 50 in total, youre left with 35 vacant rooms.

For hotels that operate a restaurant, bar, and other revenue-generating outlets, gross operating profit per available room (GOPPAR) provides a more complete picture. As you can see, learning how to calculate occupancy percentage is very simple. TrevPar or Total Revenue Per Available Room is a performance metric that will help you see the overall revenue sources of your hotel propertys operation. /Pg 1 0 R

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For example, your hotel room rate is $50 because you offer free breakfast, toiletries, and other extras that the $30 hotel room listed by your competitor doesnt. << On the other hand, your Average Room Rate allows you to calculate them over a more extended and specific periodof time (weekly, monthly, or yearly).

Graduated from Standford University, Arielle has over 5 years of experience in the Hospitality industry. /P 10 0 R If you have a significant number of hotel assets and you are looking to ask for a loan from creditors, this is the typical metric that they will look at to see your profitability potential once you remove accounting and finance variables and the amount of money you have to pay interest. /C /Normal#20#28Web#29 endobj To calculate a hotels MPI for a given month, divide the hotels occupancyrate for that month by its competitive sets aggregated occupancy rate and then multiply by 100. The maximum amount of space to be occupied should not be set to more than 85% or 90% of total available space.

The occupancy rate is calculated by dividing the number of occupied rooms by the number of available rooms and multiplying by 100 to represent how much room is occupied at a given time. Over time, it will show patterns that can be used to guide operational planning and sales, marketing, and revenue management strategies. 1 in SHA classification) divided by the number of beds available for that purpose multiplied by 365 days is calculated as a rate of occupancy, with the ratio being 100.

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how to calculate bed occupancy rate