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Network :
The Primary Care Unit
Group 9 - FMBA:
Irene Ladies Menajang
Sari Purnama
Sherrilyn Ariana
Sheila Hilman
Stephanie Berliana
Zorya Narun
FEATURES
Cambridge Hospital
Undertake The ABC Study?
Cambridge Hospital faced the problem that the revenue is capped while the
cost is rising at 10% rate per year.
Therefore, Cambridge hospital needs to increase its profit margin by reducing
its cost.
The ABC study can be used in reducing the cost and price their service
effectively.
Activity Cost
Pool
Activity Driver
Activity Cost
Number of
Drivers Unit
Activity Driver
Rate
Nurse Practitioner
Time
Nurse Practitioner
Exam Minutes
Spent With
Patient
$94,317
108,000
0,87
NP Translation
Wait TimeInterpretive
Interpretive
Wait/Translation
Minutes
$1,817
4,277
0,42
Assume Nurse
Practitioner
spend 45 minutes
of wait time for
each interpreted
visit
Activ
ity
Drive
r
Rate,
$
Units
Cost
3,49
3,39
1,53
4,13
$203,40
0,1
0,12
0,27
1,63
1,65
1,68
14,07
7,03
22,50
1,65
$76,28
60,00
45,00
$12,15
$74,25
45,00
$14,07
Cost
Physician Exam
Nurse Practitioner Exam
Nurse Exam
Intern/Resident Exam
Units
$1,65
$92,00
$14,07
$7,03
$1,65
$324,
97
1. Conducting ABC study to collect data about the cost at each service and provider level
2. After the data gathered, the we can know which service and providers has the most and least profit
margin and if there is any unnecessary cost.
3. If it is possible, reduce the service with least profitable margin and increase the service with the most
profit margins. If they are substitutable, substitute as many of the least profitable service with the most
profitable service.
4. Eliminate the unnecessary cost or provide different solutions.