Greenbelt Hospital Has the Following Activities in Its Value Chain

question 83

Essay

Greenbelt Hospital has the following activities in its value chain of providing service to each inpatient admission:
1. Schedule patient.
2. Verify insurance.
3. Admit patient.
4. Prepare patient's room.
5. Review doctor's report.
6. Feed patient.
7. Order tests.
8. Move to/from laboratory.
9. Administer lab tests.
10. Order pharmaceuticals.
11. Complete patient report.
12. Check patient's vital signs.
13. Prepare patient for operation.
14. Move to/from operating room.
15. Operate.
16. Collect charges.
17. Discharge patient.
18. Bill insurance.
Required:
Assume that the cost object is the individual patient. Determine the appropriate cost driver(s) for each activity.

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Definitions:

Profit Centers

Individual segments, departments, or divisions of a business that are responsible for generating their own revenue and profit, allowing for tracking and analysis of their financial performance separately from the overall company.

Profit Center

A part of an organization that directly contributes to its financial gain, often assessed on its ability to generate income exceeding its operational costs.

Sales Training

The process of providing sales staff with the necessary knowledge, skills, and strategies to effectively sell products or services.

Outsourced Training

The practice of having external specialists or companies conduct training and development activities for an organization's employees.