Activities and Cost Drivers in a Hospital
Greenbelt Hospital has the following activities in its value chain of providing service to each inpatient admission:
1. Schedule patient.
2. Verify insurance.
3. Admit patient.
4. Prepare patient’s room.
5. Review doctor’s report.
6. Feed patient.
7. Order tests.
8. Move to/from laboratory.
9. Administer lab tests.
10. Order pharmaceuticals.
11. Complete patient report.
12. Check patient’s vital signs.
13. Prepare patient for operation.
14. Move to/from operating room.
15. Operate.
16. Collect charges
17. Discharge patient.
18. Bill insurance.
Required Assume that the cost object is the individual patient. Determine the appropriate cost driver(s) for each activity.
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