Discuss the below:
Q: Hiren is the accounts receivable manager of an local hopital. The hospital is concerned that people are using ER services have sufficient resources to cover their visit. According to research, Hiren has found that indigent patients use the ER as a facility of convenience and not for true emergencies
He reviewed a random sample of 140 ER records from the last month to classify if they were seen for true emergencies, and by their ability to pay (insurance, self-pay at time of service, unable to pay (account write-off).
Is it reasonable to conclude that an ER visit is related to ability to pay? Use the five-step hypothesis test at the .05 significance level. Show your work or provide output.
Ability to Pay
Insurance Self-pay Unable to pay TOTAL
True emergency 46 28 21 95
Not an emergency 14 12 19 45
TOTAL 60 40 40 140