EX9.1: a- What are Multi-productivity ratios for these years? Assumptions: (1) Each test represents an equal amount of output (2) Quality is constant Measurement Price ($) Volume Labor ($) Materials ($) Overhead ($) Year 1 880 5,583 75,000 2,750 6,500 Year 2 883 6,312 77,000 2,900 6,700 Year 3 886 6,129 80,000 3,100 7,000 Year 1 Year 2 Year 3 EX9.1: b- Conclusions about the productivity trend for the procedure: EX9.4: Calculate the case-mix index for the following hospitals (Indexes marked with *) Patient classification Low level care Medium level care High level care Extreme care Average Direct care hours Hospital 1 3 6 9 12 0.5 0.35 0.1 0.05 H1 Case Mix Index* Hospital 2 0.35 0.4 0.15 0.1 H2 Case Mix Index* Hospital 3 0.3 0.3 0.22 0.18 H3 Case Mix Index* Hospital 4 0.2 0.25 0.3 0.25 H4 Case Mix Index* EX 9.7 Location 1 135,000 115000 Annual Visits Annual Paid Hours (Work Hours) Location 2 94,000 112000 Location 3 101000 125000 Step One -Calculate Case Mix & Adjusted visits Patient Classification (CPT) Initial visit Low-level care Medium-level care High-level care Direct Care Hours Weight (DC hrs/Avg DC Hours) Location 1 Distribution 0.30 0.40 0.20 0.10 Case Mix Index Location 1 Location 2 Distribution 0.10 0.20 0.40 0.30 Case Mix Index Location 2 Adjusted Hours Location 2 0.3 0.5 0.2 Skill Mix Distribution Location 3 (Given) Location 3 Distribution 0.15 0.15 0.35 0.35 Case Mix Index Location 3 Case-mix Adjusted Visits Step Two - Calculate Adjusted Work Hours Economic Equivalencies (Given Assumptions) Specialists ($110/hr) General Practitioners ($85/hr) Nurse Practitioners ($45/hr) Annual Hours Worked (paid) Adjusted Work Hours Skill Mix Distribution Skill Mix Location 1 Adjusted Hours Distribution (Given) Location 1 Location 2 (Given) 0.5 0.3 0.2 Adjusted Hours Location 3 0.7 0.3 0 Step Three - Calculate Total Salary Expense Skill Mix Distribution Location 1 Salary per Hour (Given) Labor Cost (Location 1) Skill Mix Distribution Location 2 (Given) Location 2 Distribution Labor Cost (Location 2) Skill Mix Distribution Location 3 (Given) Labor Cost (Location 3) Hours in Direct Care Location 2 Location 3 Distribution Hours in Direct Care Location 3 Specialists ($110/hr) General Practitioners ($85/hr) Nurse Practitioners ($45/hr) Annual Hours Worked (paid) Total Salary Expense Step Four - Calculate Hours of Direct Care for each location Patient Classification Initial visit Low-level care Medium-level care High-level care Hours of Direct Care Direct Care Hours Location 1 Hours in Direct Distribution Care Location 1 Ratios: Location 1 Location 2 Location 3 a.Work hours/visits b.Adjusted work hours/visits c.Work hours/adjusted visits d.Adjusted work hours/adjusted visits e.Total salary expense/visits f. Total salary expense/adjusted visits g.Percent of hours in direct patient care h.Percent of adjusted work hours in direct patient care* i.Total salary expense/hours of direct patient care* 1 general practitioner=.75, 1 nurse practitioner=.35 j: *Use these measures for the final comparison among the three sites, and discuss potential problems at each site or overall for the company. What are your recommendations to correct them