MetroPCS 7:22 PM 1 kapextmediassl-a.akamaihd.net Unit 4 Assignment Cost Accounting System Paper Unit outcomes addressed in this Assignment: Differentiate among the general types of cost behavior. Propose a rationale for cost allocation in healthcare Course outcome addressed in this Assignment HA520-2: Assess cost concepts, management control processes of budgeting, revenue cycle management, working capital, time value analysis, capital budgeting analysis, and long-term financing decisions. PC 6.1: Incorporate data, inferences, and reasoning to solve problems. Assignment Instructions Unit 4 Case 2: Sooner Health Network SOONER HEALTH NETWORK (the Network), which consists of five medical group practices, is a subsidiary of not- for-profit Sooner Health System (the System). The Network includes both primary care and specialty physicians, with an emphasis on obstetrics/gynecology, eldercare, and pediatrics. Prior to the founding of the Network, the five practices operated The Network has three practice locations, each staffed with a mix of primary care and specialist physicians. Although the Network itself is only marginally profitable, it is an important contributor to the profitability of the System because it generates a large amount of revenues from referrals for both inpatient admissions and inpatient and outpatient ancillary services. In fact, each S1 of revenue generated within the Network is estimated to lead to $8 of inpatient and ancillary revenues to the System. By limiting the amount of ancillary services provided at the three Network locations, patients are forced (or at least encouraged) to use other System facilities for such services. Still, some ancillary services are best performed at the Network locations for one or more of the following reasons: lower costs, increased physician efficiency, and improved patient convenience and hence better CAHPS (Consumer Assessment of Healthcare Providers and Systems) scores. For example, one of the practice locations now has a diagnostic imaging capability. When the scanner was moved from another facility to the Network location, volume increased, costs decreased, and both physician and patient satisfaction improved (For more information on the CAHPS program, see www. ahrq gov/ cahps/ about-cahps/index.html) The proposal currently being considered by the Network is MetroPCS 7:22 PM 1 kapextmediassl-a.akamaihd.net Unit 4 Assignment Cost Accounting System Paper Unit outcomes addressed in this Assignment: Differentiate among the general types of cost behavior. Propose a rationale for cost allocation in healthcare Course outcome addressed in this Assignment HA520-2: Assess cost concepts, management control processes of budgeting, revenue cycle management, working capital, time value analysis, capital budgeting analysis, and long-term financing decisions. PC 6.1: Incorporate data, inferences, and reasoning to solve problems. Assignment Instructions Unit 4 Case 2: Sooner Health Network SOONER HEALTH NETWORK (the Network), which consists of five medical group practices, is a subsidiary of not- for-profit Sooner Health System (the System). The Network includes both primary care and specialty physicians, with an emphasis on obstetrics/gynecology, eldercare, and pediatrics. Prior to the founding of the Network, the five practices operated The Network has three practice locations, each staffed with a mix of primary care and specialist physicians. Although the Network itself is only marginally profitable, it is an important contributor to the profitability of the System because it generates a large amount of revenues from referrals for both inpatient admissions and inpatient and outpatient ancillary services. In fact, each S1 of revenue generated within the Network is estimated to lead to $8 of inpatient and ancillary revenues to the System. By limiting the amount of ancillary services provided at the three Network locations, patients are forced (or at least encouraged) to use other System facilities for such services. Still, some ancillary services are best performed at the Network locations for one or more of the following reasons: lower costs, increased physician efficiency, and improved patient convenience and hence better CAHPS (Consumer Assessment of Healthcare Providers and Systems) scores. For example, one of the practice locations now has a diagnostic imaging capability. When the scanner was moved from another facility to the Network location, volume increased, costs decreased, and both physician and patient satisfaction improved (For more information on the CAHPS program, see www. ahrq gov/ cahps/ about-cahps/index.html) The proposal currently being considered by the Network is