HSM 340 Week 3 Assignment | Devry University
- Devry University / HSM 340
- 14 Dec 2021
- Price: $7
- Healthcare Assignment Help / General healthcare Program
HSM 340 Week 3 Assignment | Devry University
Week 3: Homework
For this week's homework, you need to respond to the following questions and problems:
Respond to the following three problems. Show your work for any
calculations performed. Each accurate and complete response is worth 20 points.
Problem 1. David
Jones, the new administrator for a surgical clinic, was trying to determine how
to allocate his indirect expenses. His staff was complaining that the current
method of taking a percentage of revenues was unfair. He decided to try to
allocate utilities based on square footage of each department, administration
based on direct costs, and laboratory based on tests. Use the information in
the chart below to answer the question.
|
|
Square Footage |
Direct Expenses |
Lab Tests |
|
Utilities |
|
200,000 |
|
|
Administration |
2,000 |
500,000 |
|
|
Laboratory |
2,000 |
625,000 |
|
|
Day-op Suite |
3,000 |
1,400,000 |
4,000 |
|
Cystoscopy |
1,500 |
350,000 |
500 |
|
Endoscopy |
1,500 |
300,000 |
500 |
|
Total |
10,000 |
3,625,000 |
5,000 |
Based on the scenario above, what are the Endoscopy Department's total
expenses?
Problem 2. Your
hospital has been approached by a major HMO to perform all their MS-DRG 470
cases (major joint procedures). They have offered a flat price of $10,000 per
case. You have reviewed your charges for MS-DRG 470 during the last year and
found the following profile:
|
Average Charge |
$15,000 |
|
|
|
Average LOS |
5 Days |
|
|
|
Routine Charge |
$3,600 |
Cost/Charge 0.80 |
Variable Cost % 60 |
|
Operating Room |
2,657 |
0.80 |
80 |
|
Anesthesiology |
293 |
0.80 |
80 |
|
Lab |
1,035 |
0.70 |
30 |
|
Radiology |
345 |
0.75 |
50 |
|
Medical Supplies |
4,524 |
0.50 |
90 |
|
Pharmacy |
1,230 |
0.50 |
90 |
|
Other Ancillary |
1,316 |
0.80 |
60 |
|
Total Ancillary |
$11,400 |
0.75 |
50 |
In the above data set, assume that the hospital's cost to charge ratio is 0.80
for routine services and 0.75 for all other ancillary services. Using this
information, what would the average cost of MS-DRG 470 be?
Problem 3. A
free-standing ambulatory care center averages $70 in charges per patient.
Variable costs are approximately $12 per patient, and fixed costs are about
$1.5 million per year. Using these data, how many patients must be seen each
day, assuming a 365-day operation, to reach the break-even point?
Please submit your homework.
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