14 Jun Question Exercises: 9.1, 9.4, and 9.7
Question
Exercises: 9.1, 9.4, and 9.7
Complete Exercises 9.1, 9.4 and 9.7. Use the Excel document below to record your answers.
Note: For 9.7, provide a short response to the following (9.7j): “Use the measures in 9.7h and i 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?”
Exercise 9.1:
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
TABLE EX 9.1
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
6,500 6,700 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?
Exercise 9.4:
Calculate the case mix index for the following hospitals, which use the same patient classification system, using the data in Table EX. 9.4.
TABLE EX. 9.4
Patient Classification Direct Care
Hours
Hospital 1
Hospital 2
Hospital 3
Hospital 4
Low-level care 3.0 0.50 0.35 0.30 0.20
Medium-level care 6.0 0.35 0.40 0.30 0.25
High-level care 9.0 0.10 0.15 0.22 0.30
Extreme care 12.0 0.05 0.10 0.18 0.25
Exercise 9.7:
The PERFORMSBETTER MEDICAL CENTER (PMC) , a three-site urology group practice, requires productivity monitoring. To create a benchmark for future years and to be able to compare performance to similar peer practices, the data in Table EX 9.7 were gathered for each of the three lacations.
TABLE EX 9.7
Measurements/Sites Location 1 Location 2 Location 3
Annual Visits 135,000 94,000 101,000
Annual Paid Hours 115,000 112,000 125,000
Patient Classification (Based on CPT Coding)
Initial Visit (.55)* .30 .10 .15
Low-Level Decision Making (.50) .40 .20 .15
Medium -Level Decision Making (.75) .20 .40 .35
High -Level Decision Making (1.40) .10 .30 .35
Skill-Mix Distribution
Specialists ($110/hr.)+ .50 .30 .70
General Practitioners ($85/hr.) .30 .50 .30
Nurse Practitioners ($45/hr.) .20 .20 .00
*Represents total hours of direct care required per patient visit within the category
+ Represents hourly compensation including fringe benefits for the skill level
Assume that 1 general practitioner = .75 specialists, and 1 nurse practitioner = .35 specialists for economic measure of skill substitution.
Calculate:
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 work hours in direct patient care
h. Percent of adjusted work hours in direct patient care ?
i. Total salary expense/hours of direct patient care ?
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