1. Mayo Clinic and Johns Hopkins Hospital allocate their healthcare operating costs using activity-based costing. The following table summarizes the costs and cost drivers:

Department	Mayo Clinic Total Cost ($)	Cost Driver	Cost Driver Quantity	Johns Hopkins Total Cost ($)
Emergency Room	$3,000,000	Number of visits	30,000 visits	$2,500,000
Surgery	$4,500,000	Surgery hours	60,000 hours	$4,000,000
Pediatrics	$2,000,000	Number of patients	40,000 patients	$1,800,000
Total	$9,500,000			$8,300,000

• Mayo Clinic had 35,000 emergency room visits, performed 70,000 surgery hours, and treated 45,000 pediatric patients.
• Allocate healthcare operating costs per visit, per surgery hour, and per patient for Mayo Clinic and Johns Hopkins using activity-based costing.
• Discuss how differences in costs per patient impact the operational efficiency and patient care quality at Mayo Clinic and Johns Hopkins Hospital.