Ex91 Answers EX9.1: What Are Multi-Productivity Ratios For

Ex91 Answers EX9.1: a- What are Multi-productivity ratios for these ye

Ex91 Answersex91 A What Are Multi Productivity Ratios For These Ye

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 ($) Volume 5,583 6,312 6,129 Labor ($) 75,000 77,000 80,000 Materials ($) 2,750 2,900 3,100 Overhead ($) 6,500 6,700 7,000

EX9.1: b- Conclusions about the productivity trend for the procedure: &LSolutions to Problem 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 2 0.50 0.35 0.30 0.20 Medium level care 2.25 0.35 0.40 0.30 0.25 High level care 3 0.10 0.15 0.22 0.30 Extreme care 3.25 0.05 0.10 0.18 0.25 Average

EX9.7 Answers EX 9.7 Location 1 Location 2 Location 3 Annual Visits 135,000 94,000 Annual Paid Hours (Work Hours) 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 ($45/hr) Annual Hours Worked (paid) Total Salary Expense Step Four - Calculate Hours of Direct Care for each location Patient Classification Direct Care Hours Location 1 Distribution Hours in Direct Care Location 1 Location 2 Distribution Hours in Direct Care Location 2 Location 3 Distribution Hours in Direct Care Location 3 Initial visit Low-level care Medium-level care High-level care Hours of Direct Care Ratios: Location 1 Location 2 Location 3 a.Work hours/visits b.Adjusted work hours/visits c.Work hours/adjusted visits d.Adjusted work hours/adjusted visits e.Total salary expense/visits f. Total salary expense/adjusted visits g.Percent of hours in direct patient care h.Percent of adjusted work hours in direct patient care i.Total salary expense/hours of direct patient care j: *Use these measures for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them? Exercise 9.1: The chief at the ultra sound division of the radiology department in a community hospital would like to measure the multi-factor productivity for a “complete abdomen†procedure. The last three years of data were accumulated, as shown in Table EX 9.1 Measurement Year 1 Year 2 Year 3 Price ($) 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 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 Direct care Patient classification 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 locations.

TABLE EX 9.7 Measurement/Sites Location 1 Location 2 Location 3 Annual visits 135,000 94,000 Annual paid hours 115,000 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 hour/visits c. Wok 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 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?