Problem 16-49 (Algo) Partial Operational and Financial Productivity; Medical Practice [LO 16-2] Family Medical Care (FMC) is a family medical practice with 7 physicians, a nursing staff of 9 to 11 nurses, and an administrative staff that varies from 5 to 8 personnel. Rajat Patel, the chief physician at FMC, is interested in studying the efficiency of the practice as a basis to set some benchmarks for further improvement, for rewarding his staff, and for comparing the efficiency of the FMC practice to other family medical practices. He is able to get comparable data for other practices from industry sources. So that the data are consistent with the industry sources, Patel has asked Marin & Associates, his accounting firm, to develop a set of productivity measures that would satisfy this requirement. Upon investigation, Joseph Marin finds that the measures to be used are the partial financial and operational productivity measures as defined in the chapter. The following information is for the last 2 years for the FMC practice: Current Year Prior Year Patient visits Nursing hours used Administrative hours used 33,100 28,700 20,400 19,500 13,525 13,525 Cost of nursing support per hour $ 40.00 $ 39.00 Cost of administration per hour $ 25.60 Industry average financial productivity Nursing Administrative 0.036 1.130 $ 25.00 0.035 1.150