The case mix does not influence the profitability. The Reason is that many complex diagnoses that are more costly to treat that lead to reimbursement. Location 1 and Location 3 factories are exposed to high salary expenses as compared to location 2 (Finkler, 2008). The implication of this is that more amount of money will be spent at location 2 and three factories in paying the nurses (Finkler, 2008). Location 1 and 3 are again exposed to high direct power as compared to location 2. The result of this leads to high expenditure rate by the two factories. More money is spent in paying the nurses as compared to the limited amount that can be spent in dealing with the hospital resources.
The efficiency is very low indicating that the amount of resources used to give or provide medical services is also economical for both locations. The ratios calculated provides the basis for determination of the proportionate structure of cost that is used for organizational management purposes (Finkler, 2008). Higher ratios indicate that the expenditure must be high as compared to lower ration that signifies low expenses. The work hours for nurses need to be moderated by allowing several shifts between specific hours of work. Balancing every aspect such as the case index for both factories must be upheld to maximize the provision of services at large (Finkler, ...
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