3. What other factors should DJ vent 2? 19-36 Compensation linked with profitability, waiting time, and quality measures. Family Fir Healthcare operates two medical groups, one in Philadelphia and one in Baltimore. The semiannual bonus plan for each medical group's president has three components: a. Profitability performance. Add 0.75% of operating income. than 10 minutes, add nothing. b. Average patient waiting time. Add $40,000 if the average waiting time for a patient to see a doctor after the scheduled appointment time is less than 10 minutes. If average patient waiting time is more c. Patient satisfaction performance. Deduct $45,000 if patient satisfaction (measured using a survey ask ing patients about their satisfaction with their doctor and their overall satisfaction with Family First Healthcare) falls below 70 on a scale from 0 (lowest) to 100 (highest). No additional bonus is awarded for satisfaction scores of 70 or more. Semiannual data for 2017 for the Philadelphia and Baltimore groups are as follows: January-June $10,250,000 July-December S Philadelphia Operating income Average waiting time Patient satisfaction Baltimore Operating income 8 minutes 77 $9,000,000 $10,600,000 12 minutes 71 $7,500,000 Average waiting time Patient satisfaction 15 minutes 8 minutes 64 73 presidents. 1. Compute the bonuses paid in each half year of 2017 to the Philadelphia and Baltimore medical group 2. Discuss the validity of the components of the bonus plan as measures of profitability, waiting time performance, and patient satisfaction, Suggest one shortcoming of each measure and how it might be overcome (by redesign of the plan or by another measure). 3. Why do you think Family First Healthcare includes measures of both operating income and waiting time in its bonus plan for group presidents? Give one example of what might happen if waiting time was dropped as a performance measure.