Monday, January 16, 2006

Something is wrong with this equation

I'm studying costing methods and overhead application for management accounting environments. Currently, I'm reading a "Current Practice" section in my textbook. The section is about a company that "provides all medical needs to terminally ill patients". It is mentioned that "Referrals and patient-days are weighted by the stage of the disease. For example ... a day for a patient whose death is imminent is counted as equivalent to three patient-days for a patient in slow decline due to the more intensive care such patients receive".

So far, I understand it. But then, the following information is provided:

The ABC system was then used to estimate the average cost per patient-day for patients in various stages of their diseases:

Stage of Disease
Slow decline ............................................
Rapid decline ..........................................
Imminent death .......................................
Death .....................................................
Cost per Patient-Day
$27.39
$29.84
$62.88
$381.57

Apparently, the dead are very expensive to treat. Of course they are. I mean, I'm no medical professional, but at that stage of one's disease, I can only assume there would be next to no chance for a meaningful recovery.

1 comment:

Anonymous said...

hehehehehehehehe

Always look on the bright side of death, de-doo de-do-de-do-de-doo
Even as you take that terminal breath, de-doo de-do-de-do-de-doo