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determine a price for its services, Casiopia Hospital takes the total cost assigned to a patient and multiplies that number by two.

In the past, Casiopia Hospital allocated all of its overhead costs to patients based on nursing time. Casiopia has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows:

    Estimated Overhead  
Activity Cost Pool Activity Measure Cost Estimated Activity
Registration Number of patients $75,000 1,000 patients
Patient care Nursing time $900,000 150,000 hours
Billing Number of bills $120,000 2,500 bills

Data concerning two patients follows:

Patient Nursing time Number of bills
Wells 100 hours 2
Muncie 60 hours 3

To determine a price for its services, Casiopia Hospital takes the total cost assigned to a patient and multiplies that number by two. Compared to the old system, which patients above will be charged more under the new activity-based costing system?

A) neither patient will be charged more

B) Wells

C) Muncie

D) both Wells and Muncie

ealth Care Delivery on the website, find information on is financed almost entirely by Medicaid and payments of residents. Private insurance pays for onocke area. Are you surprised by any of the information? onto the website for the Eden Atermnative(www.edenalt com).Rtes Is there an Eden facility nearby? If there is, special in nurs pencent of nursing home costs and the Community-based and private organizations provide also be care to enable people who are functionally disabledt zations in the community. Home care may delay, but . Log Are any of the nursing homes in your state registered s den to visit the facility to experience the difference. 6 to remain probably does not eliminate, nursing home admissions: it does, o adult Health Care Association provides information nd advocates for people needing long-term care Access the tions website (www.ahca.org) to seeits suggestions for choosing a quality nursing home. What are some of the points it suggests looking for in nursing home care? . The American Cane to improve the quality of life of caregivers and recipients long-term care services include rehabilitation hospitals day care, and hospice care associations Historically, quality of care delivered in long-term care, pr marily nursing homes, has been of great concem. L has focused on quality of services delivered in venty the uire a more of care settings. but as in other venues, regulation does not ensure personal and patient-centered care nthly The state and federal governments (via Medicaid and, to nced a lesser extent. Medicare) finance the majority of long-term sing care. Medicare pays for nursing home and rehabilitation care eals. as long as a patient needs skilled nursing care. Medicaid pays d or for custodial care after a patient has no personal resources to dical cover the costs. Medicare will pay for hospice care and medically nter necessary home health care. However, such services as adult ons day care. assisted-living facilities, and residence in a continuing ger care facility must be paid with personal funds. ty. The costs have risen sharply, and the demand for services con ft tinues to increase, making a prime policy issue of the question of ot who should pay for long-term care. Many policy makers believe that n neither government nor the private sector alone can provide long s term care and are seeking new ways of financing it, especially in light of the pending growth in the elderly population. One approach ebeing tested is to encourage all people to purchase long-term care insurance just as they would health or life insurance. Financing is Д only one major problem: other problems include determining the appropriateness and quality of services. As with other health care organizations, the Joint Commission is the primary accrediting organization for long-term care providers. State agencies may also be involved in licensing and accreditation. ACTIVITY-BASED LEARNING Medicare provides a website to help people choose a tch home. At www.medicare gov, search for nursing home compare. The information provides quality in accreditations status, and any type of regulatory de

ealth Care Delivery on the website, find information on is financed almost entirely by Medicaid and payments of residents. Private insurance pays for onocke area. Are you surprised by any of the information? onto the website for the Eden Atermnative(www.edenalt com).Rtes Is there an Eden facility nearby? If there is, special in nurs pencent of nursing home costs and the Community-based and private organizations provide also be care to enable people who are functionally disabledt zations in the community. Home care may delay, but . Log Are any of the nursing homes in your state

 

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