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devrry hsm340 week 3 quiz




Question;TCO 3) When considering how changes in volume affect total;fixed costs, it is important to consider;the relevant range;the variable cost per unit;price;both A and B;both B and C;Question 2. Question;(TCO 3) To maximize the amount of profit realized from a;rate increase, charges should be increased most in departments with;High charge payer mix/high write-offs for bad;debt, charity, & discounts;Low charge payer mix/low write-offs for bad;debt, charity, & discounts;High charge payer mix/low write-offs for bad;debt, charity, & discounts;Low charge payer mix/high write-offs for bad;debt, charity, & discounts;Question 3. Question;(TCO 3) Your controller has told you that the marginal;profit of DRG 209 (major joint procedure) for a Medicare patient exceeds the;marginal profit for an average charge patient. Why might this occur?;High fixed costs of treatment;Low Medicare payment;High prices;Low prices;Question 4. Question;(TCO 3);Your hospital has been approached by a major HMO to perform;all their DRG 225 cases (foot surgeries). They have offered a flat payment of;$8,000 per case. You have reviewed your charges for DRG 225 during the last;year and found the following profile;Average Charge: $11,300;Average LOS: 4.5 Days;data:image/png,base64,R0lGODlhWQACAHcAMSH+GlNvZnR3YXJlOiBNaWNyb3NvZnQgT2ZmaWNlACH5BAEAAAAALAEAAQBXAAEAgAAAAAAAAAIIjI+py+0PWwEAOw==;Cost/Charge Variable Cost %;data:image/png,base64,R0lGODlhFQACAHcAMSH+GlNvZnR3YXJlOiBNaWNyb3NvZnQgT2ZmaWNlACH5BAEAAAAALAEAAAAUAAEAgAAAAAAAAAIEjI+ZBQA7 data:image/png,base64,R0lGODlhHgACAHcAMSH+GlNvZnR3YXJlOiBNaWNyb3NvZnQgT2ZmaWNlACH5BAEAAAAALAAAAAAeAAEAgAAAAAAAAAIFjI+pawUAOw==;Routine Charge $3,200 0.75 65;Operating Room 1,850 0.7 80;Anesthesiology 210 0.7 75;Lab 575 0.65 40;Radiology 275 0.65 50;Medical Supplies 3,220 0.6 85;Pharmacy 955 0.55 85;Other Ancillary 1,015 0.75 55;Total Ancillary $8,100 0.7 75;In the above data set, assume that the hospital?s;cost-to-charge ratio is 0.75 for routine services and 0.70 for Total Ancillary;services. Using this information, what would the average cost of DRG 225 be?;(Your answer might be slightly different due to rounding. Pick the closest.);$7,613;$8,100;$7,613;$8,000;CORRECT $8,070;Question 5. Question;(TCO 3) 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 3,375,000 5,000;Based on the scenario above, what are the Day Op Suite's;total expenses?;What are the Day Op Suite?s total expenses?;What are the Cystoscopy Department?s total expenses?;What are the Endoscopy Department?s total expenses;Question 6. Question;(TCO 3) 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;The HMO in the above example has indicated that their;doctors use less expensive joint implants. If this less expensive implant were;used, your medical supply charges would be reduced by $2,000. What is the;estimated reduction in variable cost?;Question 7. Question;(TCO 3) How are costs classified?


Paper#58322 | Written in 18-Jul-2015

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