Question
1 (a). Describe the following methods used to estimate the cost of individual services: a. Cost-to-charge ratio (CCR) method b. Relative value unit (RVU) method
1 (a). Describe the following methods used to estimate the cost of individual services:
a. Cost-to-charge ratio (CCR) method
b. Relative value unit (RVU) method
c. Activity-based costing (ABC) method
(b) What would happen financially to a health services organization over time if its prices were set at
(i) Full costs?
(ii) Marginal costs?
(c) (i) What is cross-subsidization (price shifting)?
(ii) Is it as prevalent today as it has been in the past?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
