Case Study Report
Read the case: Cambridge Hospital Community Health Network – The Primary Health Care Unit
Requirements:
A) an executive summary (half a page)
B. Describe the purpose and features of the old cost and billing system at Cambridge Hospital
Community Health Network.
ANSWER:
Part A – Executive Summary
Cambridge Hospital Community Health Network was started in 1890, and by 1995, it had recorded more than 6000 inpatient discharges and an excess of 248,000 ambulatory visits. By 1996, the network, which operated as a non-profit firm, had working on a US$90 million budget that was allocated to support services, public health and preventive medicine, specialty and consultative services, sub-acute and skilled nursing facilities, primary and family health, and …….
Part B – Purpose and Features of the Old Cost and Billing System
The cost accounting system used at Cambridge Hospital Community Health Network was initiated in the 1960s when Centers for Medicare and Medicaid Services (CMS) required the network to apply a step-down method (Narayanan, 2002). Through the system, overhead costs were allocated to twenty-three support cost and service cost centers. Through the system, overhead costs, such as primary care units, laboratory, and operating rooms, were traced to the specific service cost center. In that regard, the cost system used at the Cambridge Hospital Community Health Network served two purposes; inform on the financial status of the….. To continue reading, click on the button below.