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I need some assistance with these assignment. accounting study guide Thank you in advance for the help! The challenge with the conventional way of billing is that patients use the nursing services in different disparities. This brings an extra cost for those who use fewer amounts of these services. On a similar note, the fixed charges are not always attributed to the nursing services offered. The other disadvantage of the conventional type of billing involves the availability of the nursing services, which are availed on call. The disadvantage attributed to the on call services is the lack of quantification of the value offered. This implies that, the emergency services some times may be of low standards and this leaves the patient on the losing end in terms of cost.

On the other hand, the activity based costing systems is advantageous since it saves the patient the challenges faced when the conventional method of costing is used. This system measures the costs per a fixed period for example per hour. This will enhance an insurance scheme, which charges per hour depending on the educational level and skills of the nursing service providers. This may include the registered nurses, licenced practical nurses and ancillary nursing assistants. In addition, the system looks forward to integrate its mechanism of operation in terms of paying for the patients to a reimbursement system.

An example of the Braintree hospital where the vice president feels that detailed information about the nursing services attributed to the patient care need to be understood in another level, particularly the insurance givers who seem not understand the mix of services offered by a diverse group of professional with dissimilar level of skills. This aspect is the one that leads to the nursing service cost.