Here is another one for you Nancy Carol

exercise5_2015_excel.xls

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EX9.1 Answers

EX9.1: a- What are Multi-productivity ratios for these years?
Assumptions:
(1) Each test represents an equal amount of output
(2) Quality is constant
Measurement	Year 1	Year 2	Year 3
Price ($)	880	883	886
Volume	5,583	6,312	6,129
Labor ($)	75,000	77,000	80,000
Materials ($)	2,750	2,900	3,100
Overhead ($)	6,500	6,700	7,000
	Year 1	Year 2	Year 3
EX9.1: b- Conclusions about the productivity trend for the procedure:

&LSolutions toProblem Set #4

EX9.4 Answers

EX9.4: Calculate the case-mix index for the following hospitals (Indexes marked with *)
Patient classification	Direct care hours	Hospital 1	H1 Case Mix Index*	Hospital 2	H2 Case Mix Index*	Hospital 3	H3 Case Mix Index*	Hospital 4	H4 Case Mix Index*
Low level care	3	0.5		0.35		0.3		0.2
Medium level care	6	0.35		0.4		0.3		0.25
High level care	9	0.1		0.15		0.22		0.3
Extreme care	12	0.05		0.1		0.18		0.25
Average

EX9.7 Answers


EX 9.7
			Location 1		Location 2		Location 3
Annual Visits			135,000		94,000		101000
Annual Paid Hours (Work Hours)			115000		112000		125000
Step One -Calculate Case Mix & Adjusted visits
Patient Classification (CPT)	Direct Care Hours	Weight (DC hrs/Avg DC Hours)	Location 1 Distribution	Case Mix Index Location 1	Location 2 Distribution	Case Mix Index Location 2	Location 3 Distribution	Case Mix Index Location 3
Initial visit
Low-level care
Medium-level care
High-level care
Case-mix
Adjusted Visits
Step Two - Calculate Adjusted Work Hours
	Economic Equivalencies (Given Assumptions)	Skill Mix Distribution Location 1 (Given)	Adjusted Hours Location 1	Skill Mix Distribution Location 2 (Given)	Adjusted Hours Location 2	Skill Mix Distribution Location 3 (Given)	Adjusted Hours Location 3
Specialists ($110/hr)
General Practitioners ($85/hr)
Nurse Practitioners ($45/hr)
Annual Hours Worked (paid)
Adjusted Work Hours
Step Three - Calculate Total Salary Expense
	Salary per Hour	Skill Mix Distribution Location 1 (Given)	Labor Cost (Location 1)	Skill Mix Distribution Location 2 (Given)	Labor Cost (Location 2)	Skill Mix Distribution Location 3 (Given)	Labor Cost (Location 3)
Specialists ($110/hr)
General Practitioners ($85/hr)
Nurse Practitioners ($45/hr)
Annual Hours Worked (paid)
Total Salary Expense
Step Four - Calculate Hours of Direct Care for each location
Patient Classification	Direct Care Hours	Location 1 Distribution	Hours in Direct Care Location 1	Location 2 Distribution	Hours in Direct Care Location 2	Location 3 Distribution	Hours in Direct Care Location 3
Initial visit
Low-level care
Medium-level care
High-level care
Hours of Direct Care
Ratios:
			Location 1		Location 2		Location 3
a.Work hours/visits
b.Adjusted work hours/visits
c.Work hours/adjusted visits
d.Adjusted work hours/adjusted visits
e.Total salary expense/visits
f. Total salary expense/adjusted visits
g.Percent of hours in direct patient care
h.Percent of adjusted work hours in direct patient care*
i.Total salary expense/hours of direct patient care*
j: *Use these measures for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them?