Instructions The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $6,000.00 Verifying patient information 9,500.00 Assigning patients 12,700.00 Searching/waiting for doctor 8,000.00 Doctor exam 4,500.00 Waiting for transport 17,600.00 15,900.00 Transporting patients Verifying lab orders Searching for equipment 14,300.00 8,000.00 Incorrect labs 11,300.00 12 Lab tests 34,000.00 Counting supplies 18,700.00 14 Looking for supplies 6,100.00 15 Staff training 3,400.00 Total $170,000.00 Required: 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities.* 3. Determine the percentages of the total ER costs that are value- and non-value-added. * 4. Interpret the information. * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Additional Question 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value- added activities. Activity Activity Cost Cost of Quality Classification Value Added/Non-Value Added Classification Patient registration 6,000 Verifying patient information 9,500 Assigning patients 12,700 Searching/waiting for doctor 8,000 Doctor exam 4,500 Waiting for transport 17,600 III Transporting patients 15,900 Verifying lab orders 14,300 Searching for equipment 8,000 Incorrect labs 11,300 Lab tests 34,000 Counting supplies 18,700 Looking for supplies 6,100 Staff training 3,400 Total $170,000 Cost of Quality Report 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Quality Cost Classification Activity Cost Percent of Total Department Cost Total Value-Added/Non-Value Added Activity Analysis 3. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Activity Cost Percent of Total Department Cost Total Instructions The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $6,000.00 Verifying patient information 9,500.00 Assigning patients 12,700.00 Searching/waiting for doctor 8,000.00 Doctor exam 4,500.00 Waiting for transport 17,600.00 15,900.00 Transporting patients Verifying lab orders Searching for equipment 14,300.00 8,000.00 Incorrect labs 11,300.00 12 Lab tests 34,000.00 Counting supplies 18,700.00 14 Looking for supplies 6,100.00 15 Staff training 3,400.00 Total $170,000.00 Required: 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities.* 3. Determine the percentages of the total ER costs that are value- and non-value-added. * 4. Interpret the information. * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Additional Question 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value- added activities. Activity Activity Cost Cost of Quality Classification Value Added/Non-Value Added Classification Patient registration 6,000 Verifying patient information 9,500 Assigning patients 12,700 Searching/waiting for doctor 8,000 Doctor exam 4,500 Waiting for transport 17,600 III Transporting patients 15,900 Verifying lab orders 14,300 Searching for equipment 8,000 Incorrect labs 11,300 Lab tests 34,000 Counting supplies 18,700 Looking for supplies 6,100 Staff training 3,400 Total $170,000 Cost of Quality Report 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Quality Cost Classification Activity Cost Percent of Total Department Cost Total Value-Added/Non-Value Added Activity Analysis 3. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Activity Cost Percent of Total Department Cost Total
