Question

ARC, Resource Divers, Service Industry Glencoe Medicineperates a cardiology care and many re ally worth the decaden te is investigating the charges l ed to cardiology patients. Currently, all cardiology patients are charged the same rate per patient day for dally care services, Dolly care services are broadly defined as occupancy, feeding, and maning care. A recent study, however, revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case being treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated. Third, the daily rate should reflect the difference in demands resulting from differences in patient type. Separating the occupancy activity into two separate activities also required the determination of the cost of each activity. Determining the costs of the monitoring activity was fairly easy because its costs were directly traceable. Lodging costs, however, are shared by two activities: lodging cardiology patients and lodging maternity care patients. The total lodging costs for the two activities were $5,795,000 per year and consisted of such items as building depreciation, building maintenance, and building utilities. The cardiology floor and the maternity floor each occupy 18,400 square feet. Hepworth determined that lodging costs would be assigned to each unit based on square feet. To compute a daily rate that reflected the difference in demands, patients were placed in three categories according to Iness severity, and the following annual data were collected: Activity Cost of Activity Activity Driver Quantity Lodging $599,040 Patient days 23,040 Monitoring 29,830 Feeding 1,968,780 529,920 4,877,400 7,975,140 Monitoring hours used Patient days Nursing hours 23,040 Nursing care 221,700 Total The demands associated with patient severity are also provided: Severity High Medium Patient Days Monitoring Hours Nursing Hours 7,910 14,760 130,400 11,860 12,100 7 5,900 3.270 2,970 15,400 25 Low Required: Check My Work Previous Next Save and Exak Sum Assignment for Gral DIL

Answer 1

Cour Assigmed amly_en Patient days :- Total cost 7,975, 140 8 346.14 per day 23040 Total mumber of Parier day Calculation A_Activity_Rated:- Rake 1:- Lodging Car Freeding fout nak: - Total mumber of parlent days 599,040 +529920 849 pes 230 40 Paliemr doys. Rate 2 :- Monitoring Cost 1968,780 $66 per~ Mom Honing hours 29830 mamiloding howr Rar 3: Nurouring Care 4877400, $22 per hour - Nussuring hours 220900 9 mursing Cart Catulation of charge per Parient patient days x Activity Rok) +(Mormistoting the time High severity. #tursing hours * Activity Rate) - Patient days s (9910 x 19). + 14760x66) +130400x22) 2910 15534.84 per patimr days Medium (11860 X 49) +(12100X66) + (25900 X22) > -58 259.13 por Patient days (327049) +(2940466) +45400*227 3270 per patient days. Severing 1860 Low

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