In this paper a decision aiding model is introduced for optimizing the allocation of beds in a hospital. The model is based on queueing theory and goal programming (GP). Queueing theory is used to obtain some essential characteristics of access to various departments (or specialities) within the hospital. Results from the queueing models are used to construct a multi-objective decision aiding model in the GP framework, taking account of targets and objectives related to customer service and profits from the hospital manager and all department heads. The model is developed for a public hospital in China. The performance of the model and implications for hospital management are presented.