Problem 16-49 Partial Operational and Financial Productivity; Medical Practice (LO 16-2] Family Medical Care (FMC) is a family medical practice with 5 physicians, a nursing staff of 7 to 9 nurses, and an administrative staff that varies from 3 to 6 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: Patient visits Nursing hours used Administrative hours used Cost of nursing support per hour Cost of administration per hour Industry average financial productivity Nursing Administrative Current Year 33,480 20,700 13,825 $ 43.00 $ 28.60 Prior Year 29,000 19,800 13,825 $42.80 $28.00 0.030 1.160 0.029 1.180 Required: 1. Compute the partial financial productivity ratios for nursing and administrative support for the current and prior year. 2. Separate the change in the partial financial productivity ratio from the prior year to the current year into productivity changes, input en mit Prey 2 of 3 Next > 13,825 $43.00 $ 28.60 13,825 $ 42.00 $28.00 Administrative hours used Cost of nursing support per hour Cost of administration per hour Industry average financial productivity Nursing Administrative 0.030 1.160 0.029 1.180 Required: 1. Compute the partial financial productivity ratios for nursing and administrative support for the current and prior year. 2. Separate the change in the partial financial productivity ratio from the prior year to the current year into productivity changes input price changes, and output changes. (For all requirements, round your answers to 4 decimal places. Negative values should be indicated by a minus sign.) Nursing Administrative 1 2. Financial partial productivity (Current year) Financial partial productivity (Prior year) Productivity change Input price change Output change