Capacity in hospitals is determined by production facilities and production factors (Sibbel 2004). Facilities like beds or departments, needed for the provision of services are predetermined on the federal level by hospital plans. Hence, for hospitals, efficient management of production factors— like physicians and nurses, play the most important part in capacity management and planning. In Germany, hospitals are facing excess capacities of beds, which are the result of faulty regulatory incentives by hospital plans and the financing system. Since the introduction of DRGs in 2004, hospitals are confronted with a more competitive environment increasing the need for efficient capacity planning and management.