MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000. c. Discuss possible reasons for the difference in the two ratios computed in (a) and (b)

Let's say the president of the United States wishes to estimate the percentage of the population that agrees with his present stance on changes to the healthcare system. The estimate must be within.04 of the actual proportion, according to the president. Count on a 95% level of certainty. The political advisers to the president located a comparable poll from two years prior that showed 60% of respondents were in favour of making changes to the health care system. Using this, find how large of a sample would be necessary if no estimate were available for the proportion supporting current policy?

Abbreviations used in general disorders of the gastrointestinal system. Healthcare providers often use abbreviations when communicating verbally and in writing. Fill in the blank with the correct abbreviation from the provided word bank. LO 5.3, 5.A, 5.E

IBD IBS GI

A patient complaining of unpredictable bouts of diarrhea that had no known cause was diagnosed with .

MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of$93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of$340,000,000.

a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM Resorts International. Round to one decimal place.

According to the Gallup Poll, $27\%$ of U.S. adults have high levels of cholesterol. Gallup reports that such elevated levels "could be financially devastating to the U.S. healthcare system" and are a major concern to health insurance providers. According to recent analyses, cholesterol levels in healthy U.S. adults average about $215 \mathrm{mg} / \mathrm{dL}$ with a standard deviation of about $30 \mathrm{mg} / \mathrm{dL}$ and are roughly Normally distributed. If the cholesterol levels of a sample of 42 healthy U.S. adults are taken, what is the probability that the mean cholesterol level of the sample:

d) Will be greater than 220?

According to the Gallup Poll, $27\%$ of U.S. adults have high levels of cholesterol. Gallup reports that such elevated levels "could be financially devastating to the U.S. healthcare system" and are a major concern to health insurance providers. According to recent analyses, cholesterol levels in healthy U.S. adults average about $215 \mathrm{mg} / \mathrm{dL}$ with a standard deviation of about $30 \mathrm{mg} / \mathrm{dL}$ and are roughly Normally distributed. If the cholesterol levels of a sample of 42 healthy U.S. adults are taken,

c) What would its standard deviation be?

Hospital length of stay. Health insurers and the federal government are both putting pressure on hospitals to shorten the average length of stay (LOS) of their patients. The average LOS in the United States is $4.5$ days (Healthcare Cost and Utilization Project Statistical Brief, October 2014). A random sample of 20 hospitals in one state had a mean LOS of $3.8$ days and a standard deviation of $1.2$ days. What is meant by the phrase "90% confidence interval"?

Workers in several industries were surveyed to determine the proportion of workers who feel their industry is understaffed. In the government sector, 37% of the respondents said they were understaffed, in the healthcare sector 33% said they were understaffed, and in the education sector, 28% said they were understaffed (USA Today, January 11, 2010). Suppose that 200 workers were surveyed in each industry. a. Construct a 95% confidence interval for the proportion of workers in each of these industries who feel their industry is understaffed.

In the first year after its release, 83 percent of emergency room doctors were estimated to have tried Dermabond glue (an alternative to sutures in some situations). (a) What kind of probability is this? (b) How was it probably estimated? (c) Why might the estimate be inaccurate? (Data are from Modern Healthcare 29, no. 32 [August 9, 1999], p. 70.)

Imagine that your job as a healthcare professional is to take a blood sample from a patient and store it in a small container in a refrigerator until it is picked up for analysis in the hospital lab. You might have to put on gloves and a mask, use a plastic syringe with a metal needle, store the sample in a test tube or vial, and place it in a cold refrigerator. Pick five objects you might encounter during the process and decide if they are made of naturally occurring or synthetic materials.

Family First Healthcare operates two medical groups, one in Philadelphia and one in Baltimore. The semiannual bonus plan for each medical group’s president has three components: a. Profitability performance. Add 0.75% of operating income. b. Average patient waiting time. Add $40,000 if the average waiting time for a patient to see a doctor after the scheduled appointment time is less than 10 minutes. If average patient waiting time is more than 10 minutes, add nothing. c. Patient satisfaction performance. Deduct$45,000 if patient satisfaction (measured using a survey asking patients about their satisfaction with their doctor and their overall satisfaction with Family First Healthcare) falls below 70 on a scale from 0 (lowest) to 100 (highest). No additional bonus is awarded for satisfaction scores of 70 or more.

$$\begin{matrix} \text{} & \text{January-June} & \text{July-December}\\ \text{Philadelphia} & \text{} & \text{}\\ \text{Operating income} & \text{\$10,250,000} & \text{\$10,600,000}\\ \text{Average waiting time} & \text{8 minutes} & \text{12 minutes}\\ \text{Patient satisfaction} & \text{77} & \text{71}\\ \text{Baltimore} & \text{} & \text{}\\ \text{Operating income} & \text{\$9,000,000} & \text{\$7,500,000}\\ \text{Average waiting time} & \text{15 minutes} & \text{8 minutes}\\ \text{Patient satisfaction} & \text{64} & \text{73}\\ \end{matrix}$$

1. Compute the bonuses paid in each half year of 2017 to the Philadelphia and Baltimore medical group presidents. 2. Discuss the validity of the components of the bonus plan as measures of profitability, waiting time performance, and patient satisfaction. Suggest one shortcoming of each measure and how it might be overcome (by redesign of the plan or by another measure). 3. Why do you think Family First Healthcare includes measures of both operating income and waiting time in its bonus plan for group presidents? Give one example of what might happen if waiting time was dropped as a performance measure.

According to the Gallup Poll, $27\%$ of U.S. adults have high levels of cholesterol. Gallup reports that such elevated levels "could be financially devastating to the U.S. healthcare system" and are a major concern to health insurance providers. According to recent analyses, cholesterol levels in healthy U.S. adults average about $215 \mathrm{mg} / \mathrm{dL}$ with a standard deviation of about $30 \mathrm{mg} / \mathrm{dL}$ and are roughly Normally distributed. If the cholesterol levels of a sample of 42 healthy U.S. adults are taken,

d) If the sample size were increased to 100, how would your answers to parts a-c change?

Is it true that an apple a day keeps the doctor away? A study designed and conducted by the National Health and Nutrition Examination Study (results published in the Journal of the American Medical Association) considered 8,399 American adults of whom 756 reported that they ate a small apple a day. The rest did not eat apples or ate them infrequently. The number of healthcare visits in the previous 36 months was recorded. Conduct a test to determine whether the adage is true.

Keystone Healthcare Corp. is proposing to spend $260,820 on an eight-year project that has estimated net cash flows of$42,000 for each of the eight years.

a. Compute the net present value, using a rate of return of 10%. Use the present value of an annuity of $1 table in the chapter.

b. Based on the analysis prepared in part (a), is the rate of return (1) more than 10%, (2) 10%, or (3) less than 10%? Explain.

c. Determine the internal rate of return by computing a present value factor for an annuity of$1 and using the present value of an annuity of $1 table presented in the text.