Partial Operational and Financial Productivity; Medical Practice Integrated Medical...

Partial Operational and Financial Productivity; Medical Practice Integrated Medical Care (IMC) is a family medical practice with 6 physicians and a nursing staff of 8 to 10 nurses and an administrative staff that varies from 4 to 7 personnel. Rajat Patel, the chief physician at IMC, is interested in studying the efficiency of the practice as a basis to set some benchmarks for further improvement, for rewarding his staff, and for comparing the efficiency of the IMC practice to other family medical practices. He is able to get comparable data for other practices from industry sources. So that the data are consistent with the industry sources, Patel has asked Marin & Associates, his accounting firm, to develop a set of productivity measures that would satisfy this requirement. Upon investigation, Joseph Marin finds that the measures to be used are the partial financial and operational productivity measures as defined in the chapter. The following information is for the last two years for the IMC practice:

Required (in your calculations use 6 significant digits after the decimal point)

1. Compute the partial financial productivity ratios for nursing and administrative support for 2012 and 2013.

2. Separate the change of the partial financial productivity ratio from 2012 to 2013 into productivity changes, input price changes, and output changes.

3. Write a brief memo from Joseph Marin to Rajat Patel interpreting the findings above.