The administrator of liberty hospital has been asked to perform an activity analysis of the emergency room (er). the er activities include cost of quality and other patient care activities. the lab tests and transportation are hospital services external to the er for determining external failure costs. the result of the activity analysis is summarized as follows: activities activity cost patient registration $ 6,500 verifying patient information 9,700 assigning patients 13,000 searching/waiting for doctor 9,200 doctor exam 4,900 waiting for transport

17,600.00

8

transporting patients

16,000.00

9

verifying lab orders

14,400.00

10

searching for equipment

8,000.00

11

incorrect labs

12,800.00

12

lab tests

17,600.00

13

counting supplies

19,200.00

14

looking for supplies

8,000.00

15

staff training

4,800.00

16

total

$160,000.00

required:
1. review the pareto charts in the panels. select the pareto chart the best represents these activities.
2. classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. classify the activities into value-added and non-value-added activities.
3. use the activity cost information to determine the percentages of total er costs that are prevention, appraisal, internal failure, external failure, and other patient care activities.*
4. determine the percentages of the total er costs that are value- and non-value-added.*
5. interpret the information.