buisness and finance

232 Quantitative Methods in Health Care Management: Techniques and Applications

rx x${dr$r5 9.'l The chief at the ultrasound division of the radiology department in a community hospital

would like to measure the multi-factor productivity for a "complete abdomen,, procedure. The last three years of data were accumulated, as shown in Table EX 9.1.

TA*L* TX 9,7 Measurement Year I Year 2 Year 3 Price (g)

Volume

Labor ($)

Materials ($)

Overhead (g)

880 883 886 5,583 6,312 6,129

75,000 77,000 80,000 2,750 2,900 3,100 6, 500 6 ,7 00 7 ,000

a. What are the multi-factor productivity ratios for these years? b. What can you conclude about the productivity trend for this procedure?

9.2 Data from the outpatient mammography operations in a health care facility accumulated in Table EX 9.2.

TABLE TX 9.? Measurement Year I Year 2 Year 3 Year 4 Price ($)

Volume

Labor ($)

Materials ($)

Overhead ($)

140 145

275,000 307,000 6,750 7,250

24,500 26,700

147 150 1R qqq 17 qq7

318,000 325,000 7,100 7,000

28,600 28,000

t,5

c, What are the multi-{actor productivity ratios Jor these years? d. What can you conclude about the productivity trend for mammography operations?

The weekly output of a radiology process is shown in Table EX 9.3, together with data for labor and material (X-ray film) inputs. The standard charge value of the output is $125 per

rroductivity 233

unrt. Overhead is charged weeklv alaforty-hour*""k#;;';;;il"tarateof $1'500plus 5timesdirectlaborcost.Assume the averaee

'rrri-r..ro, p.Jr".'r'iuil,"il1,?l,li?;f;;']"'''l cost is g1o per imase. co'pri;

TABtg rX 9"3 # of X_ravg""k Output Technicians

# of X-ray Films

1

1

J

412 6 364 5 392 5 408 6

2,840 2,550 2,720 2,790

9.4 Calculate the case mix index f( siiicatron sysiem, u;;;;ffi:jlFfi!"yXo;"'nit't'' which use the same patient cras-

TAELr rX 9.4 Direct Carc

Patient Classification Hours Hospital ,| Hospital 2 Hospitat 3 Hospital 4 Lowievel care Medium{evel care High-level care Extreme care

3.0

6.0

9_0

12.0

0.50 0.35

0.r0 0.05

0.40

0.15

0.10

0.30 0.30

0.18

0.20

v.t) 0.30

9.5 Statistjcal Data for Nursing Unit A in HADM Memorial Hospital Using the data provtded'" t O," ,l,l..?^::.,-.ulate rhe foflowing-,",io,

"nO compare them toIne benchmark values of a peer group snown rn brackets ,, ,,:

a, Case-mix 'ndex

[l.2OI. Does Unit A serve more severe patients?

" A?ff:'j|#J,'"il: ffig."|:91,:* Discharse r32.81t what wourd be the reasons " Il:i:,:i':f ,iti:::: r il;::iil:H"l 1 i:::";ilHH -J;; d. Percentage of Ad,usted Nursrng Hours in Direct patient Care [.64J.

ProductivitY 235

3.'1",ff :x1;I#:j. :H:#'#i{:!'":{{;": il:::l#il',$::Y:

nurs ne un'is

".

't^rt"* Nursing Hours per

Adiusted Discharqe

o. *"",* Sarary Expense per:ilil:ffi:::::

patientcare

c. Percentage o{ Adjusted Nurstn

c' rs'!!r''-J " thrpe-site urology

group practice',

'lj"ft ;:[;#jx:x.T?r'nniitri::Jali**ll*ll"'l;nru.rx;:

l-acn o{ the three tocations'

TASLI TK *.? ;;.-i Location@ Measurements/Sites

AnnualVisits 1 35,000

1 15,000

94,000 1 12,000

.10

.20

.40

.30

.30

_)u

.20

101 ,000

125,000

.15

.15

.35

.70

'30 .00

ilili.?llxii::-on (Based on cPr codine)

,n11i.1yisir (.55)-

Low-Level Decision Makin9.(-5u), -

".0i.-t*" Decision Making1

75)

Hioh-Level Decision Makrng ( r '.+"/

Stitl'lvtix Oistribution

Tfl?:fi::l'ffili,,o*,

.30

.40

.20

.10

.50

.30

.20

iurse Practitloners ($45/hr)

' Replesents totar hou" t t"":-t:::;T;

,u,in" [""'-' ", "e

skill level'

t Represents hourly comp€ngton Incll

t Represems rrou.r '-" '- ,! -, '<o

nractitioner = .35 Specialists

Assume that 1 general practitioner:J5 specialists'

and 1 nurse prac'

{or economic measure ot sKlll suu)r

Calculate:

a. Work hourtvislts b. Adiusted work hour{visits c. Work hourJadjusted visits

i. ea1"t"o *o'r hourtadjusted visits+

e. Total salary expense/visits Total salary expense/adiusted

visits+

236 Quantitative Methods in Health Care Management: Techniques and Applications

g. Percent of work hours in direct patient care h. Percent of adjusted work hours in direct patient carel i. Total salary expense/hours of direct patient carer

tuse these measures {or 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?