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.

Discuss possible reasons for the difference in the two ratios computed in (a) and (b).

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.

"You're sick, we're quick," says a slogan announcing a newer healthcare business, the Minute Clinic. Staffed by either a nurse practitioner or physician's assistant, the clinics are located in drugstores and shopping centers. They treat walk-ins with routine problems for minimal cost. The clinics have begun to attract public attention. Some critics, however, call this type of medial care "inappropriate." Write a paragraph explaining what the clinic's business philosophy might be, and express your opinion about the clinic's pros and cons.

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 The patient has been diagnosed with ulcerative colitis, and therefore has a form of .

The average weekly wage for production and nonsupervisory workers in the education and healthcare sectors was $638 in January 2010, up from$440 in the same month a decade earlier, according to the Bureau of Labor Statistics. With all else being equal, such a wage increase would be predicted to decrease the demand for labour and result in a decline in employment. Instead, more than 4 million jobs were added between 2000 and 2010 as a result of the huge increase in labour demand. How do you account for this seeming contradiction?

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.

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?

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 mutual fund is a professionally managed investment that can be sold to the general public. The following table lists the 3-month rates of return, in percent, for samples of healthcare-related and technology-related mutual funds, as reported by Morningstar, an independent investment research company.\

$$\begin{array}{lcccr|ccccc} \hline {\text { Healthcare}} & {\text { }} &{\text { }} &{\text { }} &{\text { }} &{\text { Technology }} \\ \hline 9.7 & 9.5 & 7.6 & 6.8 & 6.7 & 6.5 & 6.4 & 6.4 & 6.2 & 4.9 \\ 6.7 & 6.6 & 4.6 & 3.9 & 3.9 & 4.6 & 4.6 & 4.2 & 3.6 & 3.2 \\ 3.7 & 3.3 & 3.0 & 0.8 & -9.9 & 2.9 & 2.8 & 2.7 & 2.5 & \\ \hline \end{array}$$

a) Use the technology of your choice to obtain normal probability plots and boxplots for the two samples.
b) Is it reasonable to use the pooled t~test to perform a hypothesis test here? Explain your answer.
c) Is it reasonable to use the Mann-Whitney test to perform a hypothesis test here? Explain your answer.

One of the more common adverse effects of cancer chemotherapy is the destruction of leukocytes. Before his next scheduled chemotherapy treatment, a patient undergoes a blood test called an absolute neutrophil count (ANC), which reveals that his neutrophil count is 1900 cells per microliter. Would his healthcare team be likely to proceed with his chemotherapy treatment? Why?

"Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only$20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the$80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)

Economists often blame the health insurance system for excessive use of medical care. Given your analysis, why might the use of care be viewed as “excessive”?"

Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are required to eat one apple daily.

a. How would this apple-a-day law affect the demand and equilibrium price of apples?

b. How would the law affect the marginal product and the value of the marginal product of apple pickers?

c. How would the law affect the demand and equilibrium wage for apple pickers?

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?

See what kinds of thermometers you can find by taking a look around your house. Most homes have thermometers for use in the kitchen, outdoors, in healthcare settings, or indoors. Make the following notes for each thermometer: a.What scales of temperature are used? b. What is each thermometer's temperature range? c. What is the lowest temperature variation that each thermometer can detect? d. For each thermometer, what altering physical characteristic is employed to indicate a change in temperature?