Reference no: EM13332008
Exercise 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. 1
TABLE EX 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 ($)
|
2,750
|
2,900
|
3,100
|
|
Overhead ($)
|
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 2:
Calculate the case mix index for the following hospitals, which use the same patient classification system, using the data in Table EX. 4.
TABLE EX. 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
|
0
|
0.10
|
0.15
|
0.22
|
0.30
|
|
Extreme care
|
12.0
|
0.05
|
0.10
|
0.18
|
0.25
|
Exercise 3:
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 7 were gathered for each of the three locations.
Table Ex 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 ?
?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?
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