Question

Tests, Diagnosis, Treatment and Referral Discharge Planning, Rehab/LTC Referral Analyzing the Hospital Value Chain SUPPLIERS (Physicians, MCOs) Marketing and Promotion ER, Admitting and Patient Intake Referral and Follow-up Customers Costs Associated with Activities Identify the factors that drive the above costs* Compare Costs and Drivers to Competition Quantify the amount of value created by each activity What is the inter-activity of this activity in the value chain? How can costs of the activity be reduced without reducing value? How can value be increased by improving activity or changing to an alternative actitivity? External Business Drivers: Economic, human resource, government, public perception, market or customer Drivers: Technology, process or systems, policies, shareholders or financial, leadership or organizational Internal Business

When filling out information it can use either approach.

A. Physician fee for service costs range from $140,000 a year to $400,000 a year for a total cost of ~$12,000,000.

or.....

B. 10 Physicians @ 140,000 = $1,400,000

5 Physicians @ 180,000 = $1,900,000

Total = $2,300,000

Answer 1

As the question is focusing on ways to cut down costs the more appropriate approach would be B. 10 physicians @140000 =$1400000, 5 physicians @180000 =$1900000

Total $2300000