M3A5 Cost-to-Charge Ratio ExercisesFor the following questions, use the Cost-to-Charge Ratio Worksheets file provided. Provide your answers to ALL the question in an attachment. Use the Tip Sheet to walk through the assignment.1. Use mappings to figure out cost-to-charge ratios for departments not yet calculated.a. Apply relevant information to the trial balance to populate the cost centers, sub account information, salary/other type, and cost center.b. In the charge section, apply mappings for cost center departments to the CDM summary.c. Aggregate costs and charges in the cost-to-charge ratio tab.2. An audit has uncovered mammography charges in an off-site clinic, but the costs for the mammography services are already allocated to the RAD-MAM department. The total charges for mammography in the clinic are $300,000. What is the new cost-to-charge ratio for mammography?3. Due to competitive forces and favorable managed care contracting, management decides to restrike radiology charges such that the cost-to-charge ratio for each radiology department will be no less than 0.5000. What is the target for total charges for each category? If the change to charges is uniform, what is the factor to apply to each cost center’s charges (old price × conversion factor = new price)

Did the EIM team present a convincing business case for establishing a new EIM division at St. Rita’s?b. Would you add anything to the team’s vision and mission statements for the EIM division? Why or why not?c. Do you agree with how the EIM team proposed the organizational structure for the EIM division? Are there alternate structures the team could have recommended?d. How would you evaluate the team’s recommendation for EIM implementation? Do you think this is a realistic approach? Do you think the team was too ambitious or not ambitious enough in its three-year plan?e. What are some challenges that may impede a smooth implementation of the EIM division at St. Rita’s? What would you suggest be done to minimize these challenges?