Royal Valley Hospital is a major hospital that serves 11 small rural communities within a 40-kilometre radius. The hospital offers all the medical and surgical services of a typical small hospital. It has a staff of 18 full-time doctors and 20 part-time visiting specialists. Royal Valley Hospital has a payroll of 150 employees consisting of technicians, nurses, therapists, managers, directors, administrators, dieticians, secretaries, data processors and cleaners.
Required:
a. Using your (limited, moderate or in-depth) knowledge of a hospital's operations, identify as many activities as you can.
b. For each of the activities listed in a., identify a cost driver that would serve as a valid measure of the resources consumed by the activity.