see the attached file

timer Asked: Nov 22nd, 2016

Question description

Please see the attached file for instructions

It is all about anaylzing, so you don't have to do citations. It is better to be professional in accounting or finance to answer this question.

Fixed costs won’t be cheaper because of the more outpatients visit than in patient visits. Is that cost driver a true or a very good indicator how to allocate these? No, it is not a good indicator. It is not a good cost drive. So, what would be a better mechanism by which to allocate? What is the better way of doing it? When they do malpractice insurance to look at each individual physician, and each individual physician comes up with a dollar amount the patient day for malpractice, would that be a better way of doing it? Each year, a physician applies for malpractice insurance; the malpractice company is insuring takes to look at the record claims, they have none. They have very low dollar amount to take for insurance, if they have a lot they have a very high dollar amount, would that be a better mechanism? One way of looking at allocating expenses not practice insurance expenses. Finding out the true cost for each individual as to where they work. That’s one method. The second method: how do we know how many dollars in the hospital versus how many dollars in the clinic? Which mechanism we can figure this out? So we gotta find a better cost driver. That is the key. That was the professor recommendation for question #4, please analyze #4 based on the professor’ comment. Here is the case: df
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