Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9.9 Now that new leadership has taken over the General Pediatrics division (refer to Exercise 9.8), the Department of Pediatrics would like to compare the
9.9 Now that new leadership has taken over the General Pediatrics division (refer to Exercise 9.8), the Department of Pediatrics would like to compare the productivity of General Pediatrics to the Hematology and Endocrinology divisions, making adjustments to patient visit volume to account for the service mix in each division. Table EX 9.9 contains the operations data obtained for the Hematology and Endocrinology divisions.Table EX 9.8 Measurement Before New After New Leadership Leadership Total Worked Hours 16,062 14,813 Patient Visits 11,826 12,113 Reimbursement per Visit 33.00 30.87 $ Overhead Costs ($) 28,546 29,831 Materials Costs ($) 94,421 58,447 Skill Mix Distribution RN ($28.85/hour) 0.60 0.61 LPN ($17.60/hour) 0.21 0.26 Other ($11.8/hour) 0.19 0.13 Assume that 1 LPN = .6 RN and 1 other nursing staff = 0.4 RN. a. Calculate the total worked hours/unadjusted patient visits before and after new leadership. b. Calculate the skill-mix-adjusted hours/unadjusted patient visits. c. Calculate the standardized labor costs of care/unadjusted patient visits. d. Calculate the multifactor productivity measure.Table EX 9.9 Measurement Hematology Endocrinology Total Worked Hours 16,442 21,252 Patient Visits 4,319 9,994 Reimbursement per Visit ($) 51.60 48.88 Overhead Costs ($) 9,922 37,004 Materials Costs ($) 45,676 98,000 Skill Mix Distribution RN ($28.85/hour) 0.42 0.42 LPN ($17.60/hour) 0.36 0.36 Other ($11.8/hour) 0.22 0.22a. Determine the service mix adjustment and adjusted patient visit volume for each division. b. Calculate the total worked hours/service-mix-adjusted patient visits for each of the three divisions. c. Calculate the skill-mix-adjusted hours/service-mix-adjusted patient visits for each division. d. Calculate the standardized labor costs of care/service-mix- adjusted patient visits for each division. e. Calculate the multifactor productivity measure, with patient visit volume adjusted for the service mix for each division. f. What do you conclude about the productivity of the General Pediatrics, Hematology, and Endocrinology divisions of the Pediatrics Department
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started