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Suppose that a surgical ward has gathered the following information for four nursing activities and two types of paitents. Patient Category Driver Normal Intensive Activity

Suppose that a surgical ward has gathered the following information for four nursing activities and two types of paitents.

Patient Category
Driver Normal Intensive Activity Rate
Treating Patients Treatments 8000 10,000 $4.00
Providing hygienic care Hygienic hours 6,000 22,000 $5.00
Responding to requests Requests 40,000 100,000 $2.00
Monitoring patients Monitoring hours 7,500 90,000 $3.00

Normal

Intensive
Treating patients:
(Driver x Activity Rate) $32,000
(Driver x Activity Rate) $40,000
Providing hygienic care:
(Driver x Activity Rate) $30,000
(Driver x Activity Rate) $110,000
Responding to requests:
(Driver x Activity Rate) $80,000
(Driver x Activity Rate) $200,000
Monitoring patients:
(Driver x Activity Rate) $22,500
(Driver x Activity Rate) $270,000
Total cost assigned: $164,500 $620,000
Part 2
Nursing cost per patient per day
Normal Intensive
(Total cost assigned / patient days) $16.45
(Total cost assigned / patient days)

$77.50

Part 3

Total nursing costs Normal (from part 1) $164,500
Total nursing costs Intensive (from part 1) $620,000
Total nursing costs $784,500
Normal patient days 10,000
Intensive patient days 8,000
Total patient days 18,000
Nursing cost per patient day $43.58

I have determined the total nursing costs assigned to each patient category and I have calculated the nursing cost per day for each type of patient.

My question is: The supervisor of the surgical ward has suggested that patient days is the only driver needed to assign nursing costs to each type of patient. I have calculated the charge per patient day using this approach above. However, why would only using the patient days as the only driver be a bad idea to calculate costs?

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