14 Jun Question Complete Exercises
Question
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
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