# Finance – exercises 9.1, 9.4 and 9.7

Complete Exercises 9.1, 9.4 and 9.7.

Don't use plagiarized sources. Get Your Custom Essay on
Finance – exercises 9.1, 9.4 and 9.7
Just from \$13/Page

Note: For 9.7, provide a short response to the following (9.7j): “Use the measures in 9.7h and i for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them?”

Exercise 9.1: The chief at the ultrasound division of the radiologydepartment in a community hospital would like to measure the multi-factor productivity for a “complete abdomen” procedure. The last three years of data were accumulated, as shown in Table EX. 9.1 TABLE EX 9.1 Measurement Year 1 Year 2 Year 3 Price (\$) 880 883 886 Volume 5,583 6,312 6,129 Labor (\$) 75,000 77,000 80,000 Materials (\$) 2,750 2,900 3,100 6,500 6,700 7,000 a. What are the multi-factor productivity ratios for these years? b. What can you conclude about the productivity trend for this procedure?

Exercise 9.4: Calculate the case mix index for the following hospitals, which use the same patient classification system, using the data in Table EX. 9.4. TABLE EX. 9.4 Patient Classification Direct Care Hours Hospital 1 Hospital 2 Hospital 3 Hospital 4 Low-level care 3.0 0.50 0.35 0.30 0.20 Medium-level care 6.0 0.35 0.40 0.30 0.25 High-level care 9.0 0.10 0.15 0.22 0.30 Extreme care 12.0 0.05 0.10 0.18 0.25 Exercise 9.7: The PERFORMSBETTER MEDICAL CENTER (PMC) , a three-site urology group practice, requires productivity monitoring. To create a benchmark for future years and to be able to compare performance to similar peer practices, the data in Table EX 9.7 were gathered for each of the three lacations. TABLE EX 9.7 Measurements/Sites Location 1 Location 2 Location 3 Annual Visits 135,000 94,000 101,000 Annual Paid Hours 115,000 112,000 125,000 Patient Classification (Based on CPT Coding) Initial Visit (.55)* .30 .10 .15 Low-Level Decision Making (.50) .40 .20 .15 Medium -Level Decision Making (.75) .20 .40 .35 High -Level Decision Making (1.40) .10 .30 .35 Skill-Mix Distribution Specialists (\$110/hr.)+ .50 .30 .70 General Practitioners (\$85/hr.) .30 .50 .30 Nurse Practitioners (\$45/hr.) .20 .20 .00 *Represents total hours of direct care required per patient visit within the category + Represents hourly compensation including fringe benefits for the skill level Assume that 1 general practitioner = .75 specialists, and 1 nurse practitioner = .35 specialists for economic measure of skill substitution. Calculate: a. Work hours/visits b. Adjusted work hours /visits c. Work hours /adjusted visits d. Adjusted work hours/adjusted visits ⱡ e. Total salary expense/visits f. Total salary expense /adjusted visits ⱡ g. Percent of work hours in direct patient care h. Percent of adjusted work hours in direct patient care ⱡ i. Total salary expense/hours of direct patient care ⱡ ⱡUse these measures for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them? Week 5 Exercise Assistance Exercise 9.1 a: Formula 9.2 and Example 9.2, p. 208

Exercise 9.4 a: Formula 9.8 and Example 9.8, p. 218-219 Exercise 9.1: a. Formula 9.2 Multi-factor Productivity = Service Item * Price / Labor + Material + Overhead EXAMPLE 9.2: A specialty laboratory performs lab tests for the area hospitals. During its first two years of operation the following measurements were gathered; Measurement Year 1 Year 2 Price per test (\$) 50 50 Annual tests 10,000 10,700 Today labor costs (\$) 150,000 158,000 Material costs (\$) 8,000 8,400 Overhead (\$) 12,000 12,200 Exercise 9.4: a. Formula 9.8 Case mix index j = ∑ Wi Pij where Wi = weight for ith category care Pi j = percent of patients for acuity category i in unit j EXAMPLE 9.8: Unit A and unit B (from Example 9.3), medical care units in Memorial Hospital , classify patients into four acuity categories (Type 1 through Type IV), with direct care requirements per patient day being respectively , 0.5, 1.5, 4.0, and 6.0 hours. Annual distributions of patients in these four acuity categories in Unit A were 0.15, 0.25, 0.35, and 0.25. Annual distributions of patients in Unit B were 0.15, 0.30, 0.40, and 0.15. Calculate the case mix for these two units, and determine which unit has been serving more severe patients. Solution: Using formula (9.6), first calculate the weights for each of the four categories W1 = H1 / ∑ H1 / n = 0.5 / (0.5 + 1.5 + 4.0 + 6.0) / 4 = 0.5 / 12 / 4 = 0.5/3 = 0.17 W2 = H2 / ∑ H1 / n = 1.5 / (0.5 + 1.5 + 4.0 + 6.0) / 4 =1.5 / 12 / 4 = 1.5/3 = 0.5 For 9.7, provide a short response to the following (9.7j): “Use the measures in 9.7h and i for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them?” W3 = H3 / ∑ H1 / n = 4.0 / (0.5 + 1.5 + 4.0 + 6.0) / 4 =4.0 / 12 / 4 = 4.0/3 = 1.33 W4 = H4 / ∑ H1 / n = 6.0 / (0.5 + 1.5 + 4.0 + 6.0) / 4 =4.0 / 12 / 4 = 6.5/3 = 2.0 Then apply formula (9.8) to calculate the case mix as: Case mix index A = ∑ Wi PiA =(0.17 * 0.15) + (0.5 * 0.25) + (1.33 * 0.35) + (2.00 * 0.25

Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@myessay.help.

Try it now!

## Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

## Essay Writing Services

At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.