The admissions office of a large hospital has an annual operating budget of $700,000. These costs are distributed to impatient departments (surgery, medicine, pediatrics, psychiatry) and to outpatient departments (drug treatment, prenatal care, and dialysis). In the past, the admissions office’s costs have been allocated to inpatients and outpatients based on the number of patients processed. But now hospital management is seeking some alternative ways to distribute these costs.
The following data for the last 12 months summarize the number of patients, average days per stay, average patient bill, and average number of minutes to register inpatients and outpatients.
# of patients Average days per patient stay Average patient Bill Average minutes to register a patient
Inpatient 25,000 6.50 $8,200 12
Outpatient 120,000 1.00 700 8
a. Allocate the admissions office’s annual operating budget to inpatient and outpatient categories based on
1. Total number of patients
2. Total number of patient days
3. Total patient billings
4. Total minutes used registering
b. Discuss the managerial implications of these various alternative ways to distribute the admissions office’s costs. Which method should the hospital adopt?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more