Question

The hospital in-patient admission rate for employees of the Ramsey Manufacturing Company is 100 admissions per 1000 employees per year. The Prendergast Corporation has older employees and is told that its hospital in-patient admission rate will be 10% higher than Ramsey’s. At the same time, however, all tonsillectomies will be done in the hospital’s outpatient department instead of requiring the patient to be admitted as an in-patient. Given that 5% of all in-patient admissions are for tonsillectomies, what is the hospital in-patient admission rate for the employees of the Prendergast Corporation?

a) 110 per 1000 employees per year
b) 100 per 1000 employees per year
c) 105 per 1000 employees per year
d) 95 per 1000 employees per year

Answer 1

To calculate the Prendergast Corporation's hospital in-patient admission rate, we first increase Ramsey's rate by 10%, then subtract the 5% of admissions that are for tonsillectomies. The final adjusted rate is 105 per 1000 employees per year.

Step-by-step explanation:

The question is related to calculating the hospital in-patient admission rate for the Prendergast Corporation based on the given admission rate for Ramsey Manufacturing Company and factoring in the specified changes (a 10% increase and the exclusion of tonsillectomies).

Firstly, the rate for Ramsey is 100 admissions per 1000 employees per year. The Prendergast Corporation has a 10% higher rate, which means:

• 10% of 100 = 10 admissions
• The initial adjusted rate = 100 + 10 = 110 admissions per 1000 employees per year

However, since 5% of these admissions are for tonsillectomies, which will no longer be in-patient, we should reduce the adjusted rate:

• 5% of 110 = 5.5 admissions
• The final admission rate = 110 - 5.5 = 104.5 admissions, which when rounded to a whole number, is 105 admissions per 1000 employees per year

Therefore, the correct in-patient hospital admission rate for the Prendergast Corporation is Option c) 105 per 1000 employees per year.