Perform a Capacity Analysis of the Process Given Below

question 29

Multiple Choice

Perform a capacity analysis of the process given below. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 20 units per hour and each unit must be worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant manager(s) do Stages C and D work and are cross-trained to do both jobs. The coding specialist(s) do Stage B work.
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-What is the current labor utilization of the coders at Stage B if two coding specialists are currently on duty?

• A) Less than 90 percent
• B) More than 90% but less than or equal to 95%
• C) More than 95% but less than or equal to 100%
• D) More than 100% but less than or equal to 105%

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Definitions:

Co-Payment Insurance

An insurance policy feature that requires the insured individual to pay a fixed amount out of pocket for covered services.

Medicare Reform

Changes and updates made to Medicare, the U.S. federal health insurance program for people who are 65 or older, with the aim of improving the program's efficiency, sustainability, and coverage.

First-Dollar Coverage

Insurance coverage that pays out from the initial cost, without a deductible, for covered expenses.

Out-Of-Pocket Expenditures

Expenses for medical care that aren't reimbursed by insurance and are paid directly by the patient.