Question
The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality
The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: 1 Activities Activity Cost 2 Patient registration $6,400.00 3 Verifying patient information 9,400.00 4 Assigning patients 12,800.00 5 Searching/waiting for doctor 8,000.00 6 Doctor exam 4,600.00 7 Waiting for transport 17,600.00 8 Transporting patients 15,900.00 9 Verifying lab orders 14,300.00 10 Searching for equipment 7,800.00 11 Incorrect labs 9,000.00 12 Lab tests 9,300.00 13 Counting supplies 16,900.00 14 Looking for supplies 5,200.00 15 Staff training 2,800.00 16 Total $140,000.00 Required: 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities.* 3. Determine the percentages of the total ER costs that are value- and non-value-added.* 4. Interpret the information. * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Score: 0/77 1 Quality Cost Classification Activity Cost Percent of Total Department Cost 2 3 4 5 6 7 Total Points: 0 / 17 Check My Work Classify each activity as either prevention, appraisal, internal failure, external failure, or other patient care. List the total costs of each of these five categories in a column called quality cost classification. Keep in mind that three are nonquality costs. Using the cost of the activities, divide individual amounts by total process costs to obtain a percent of total process cost. Together these percentages should equal 100%. 3. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. Score: 0/36 1 Activity Cost Percent of Total Department Cost 2 3 4 Total Points: 0 / 8 Check My Work Classify each activity as value-added or non-value-added. Divide the total of value-added by the total costs to obtain the percentage and divide the total of non-value-added by the total costs to obtain the percentage. Together these percentages should equal 100%.
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