6.39 project management case study- Solutions
Question -1 :
Evaluate the following results from your request for information and decide which
three vendors to contact for a request for a proposal.
Ans: Vendor 1, 4 and 5
Question – 2 :
Now determine eight items that should be included in the request for proposal that
will be distributed
Ans: – Summary, business overview and background, project goals, strategy, budget, criteria
Question – 3 :
Now determine eight items that should be included in the request for proposal that
will be distributed
Ans: – Summary, business overview and background, project goals, strategy, budget, criteria
6.39 project management case study Question – 3 :
Assume that you want to go with vendor one after the RFPs are evaluated. Now u
must perform a cost benefit analysis to see if it is feasible to entirely outsource. Their
pricing structure is $5 per inpatient chart, $3 per outpatient chart, $1.75 for each ER,
and $1 per ancillary account. Base your calculations on the average daily accounts for
each patient type listed below.
| Inpatient | 70 | $350 |
| Outpatient | 75 | $225 |
| Emergency Room | 185 | $323.75 |
| Ancillary | 360 | $360 |
Ans: –
| Patient Type | Earnings Per Day $ | Days | Weeks | Annual Earnings | Total $ |
| Inpatient | 350 | 5 | 52 | = 350*5*52 | 91,000 |
| Outpatient | 225 | 5 | 52 | = 225*5*52 | 58,500 |
| Emergency Room | 323.75 | 5 | 52 | = 323.75*5*52 | 84,175 |
| Ancillary | 360 | 5 | 52 | = 360*5*52 | 93,600 |
| Total Annual Earnings | 327,275 | ||||
Step-by-step explanation: for 6.39 project management case study
Total Yearly Hours for Full Time Equivalent (FTE) basis = 8 hours per dayX5 days per weekX52weeks
= 8*5*52 = 2080 hours
* Note: Calculation for Yearly Hours is Considering 8 hours in a day of work for 5 days that make a week. If FTE basis is changed to (say) 12 hours per day for 7 days a week, Total Yearly hours will be = 12*7*364 = 4368 hours. Then all following calculations will be based on the basis of 4368 hours of work per year.
Total Yearly Hours for Full Time Equivalent (FTE) basis = 8 hours per dayX5 days per weekX52weeks
= 8*5*52 = 2080 hours
* Note: Calculation for Yearly Hours is Considering 8 hours in a day of work for 5 days that make a week. If FTE basis is changed to (say) 12 hours per day for 7 days a week, Total Yearly hours will be = 12*7*364 = 4368 hours. Then all following calculations will be based on the basis of 4368 hours of work per year.
Cumulative pricing as per pricing structure for each type of patient shall be shall be = Charges at a day X 5 (days per week) X 52 weeks in a year
Question 4
For Vendor 1, The Annual Salary (Coding Charges) on FTE basis being 8 hours in a day and 5 (days a week) for 52 weeks in a year shall be:
| Patient Type | Current Per hour rate $ | Hours per year | Total Current Salary $ | Raise $ | Hours per year | Next Year’s Salary $ |
| Inpatient | 24 | 2080 | 49,920 | 24.60 | 2080 | 51,168 |
| Outpatient | 19.75 | 2080 | 41,080 | 20.24 | 2080 | 42,099.2 |
| Emergency | 18.25 | 2080 | 37,960 | 18.70 | 2080 | 38,896 |
| Ancillary | 17.50 | 2080 | 36,400 | 17.93 | 2080 | 37,294.4 |
Question: 5
Is it cost-effective to consider outsourcing coding based on these results?
– It could be, but the work has to get done.A Comparative Table of Charges Per Patient in every category with Coding Charges for the current and next year is as follows:
|
Patient Type |
Charges to Patient |
Current Year’s Cost of Outsourcing to Vendor 1 |
Next Year’s Cost of Outsourcing to Vendor 1 |
|
Inpatient |
91,000 |
49,920 |
51,168 |
|
Outpatient |
58,500 |
41,080 |
42,099.2 |
|
Emergency |
84,175 |
37,960 |
38,896 |
|
Ancillary |
93,600 |
36,400 |
37,294.4 |
|
Overall |
327,275 |
165,360 |
169,457.6 |
As observable the individual category charges and cumulative charges to patients are higher than current and next year’s payments to Vendor 1 cumulatively as well as for every type of patients. So based on these results it is cost effective to outsource coding.
Question 6:
What would the outcome be if you considered vendor 5 at $30.00 per hour?
Answer :
– That’s 48 hours that has to be paid out. The coders are certified and are familiar
with 3m encoder as well as computer-assisted coding.
Here is the full solution for 6.39 project management case study. Other parts of similar question
1.Determine the baseline duration of the critical path of the project.
Purchase and Installation of Encoder is a baseline duration of 151 days or 5 months.
2.Determine the variance the cause a week’s delay.
Select Vendor has a week delay, so does finalize contract and CEO signature.
3.Determine the variance that puts the project back on track.
Build Interfaces puts the project back on track because it was estimated to take 40 days
and it only took 30 giving the project back 10 days.
4.Give an opinion on whether this was a successful project implementation or not and support your position.
The project estimated that it would take 5 months to complete and was only past that
date by 3 days, which tells me that this was a successful project. The biggest hit to the
project were the 3 variances that caused a week’s delay. 21 days were unaccounted for in
the project timeline. The 10 days that were gained back when the interface portion was
completed early. What should have been done and would have been a big help to finish
the project ahead of schedule would have been to obtain signatures and documents a
few days earlier.
5.Evaluate the impact of the document completion task on the overall project.
The only thing that would have a positive impact on the overall project would be to
shorten that task to 2 or 3 days.
Recent Comments