Project Rosemont Hill Health Center [PDF]

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Rosemont Hill Health Center Income Statement For the Year Ended December 31, 1982 Revenue from patient fees Other revenue Total Revenue Expense: Program services Utlities Laboratory General and administrative Total expenses Surplus (deficit)

$ $ $ $

$ $ $

690,900 10,000 700,900

$ $

724,000 (23,100)

470,000 20,000 50,000 184,000

Expenses and Patient Visits for 1982 By Department Expenses Number of patient visits

Salaries

Other

Total

Department Pediatrics Family Planning Adult medicine Nursing Mental Health Social Services Community health

5000 10000 2100 4000 1400 1500 2500

$40,000 $10,000 $60,000 $54,000 $30,000 $64,000 $10,000

$16,000 $30,000 $32,000 $12,000 $16,000 $16,000 $20,000

$56,000 $40,000 $92,000 $66,000 $46,000 $80,000 $30,000

Dental Subtotal

6400 32900

$40,000 $308,000

$20,000 $162,000

$60,000 $470,000

Administration Rent Utilities Laboratory Work Cleaning

$ 76,000.00 $ $ $ $ 32,000.00 $ $

Recordkeeping Total

$ 14,000.00 $ $430,000.00 $

4,000.00 72,000.00 20,000.00 18,000.00 12,000.00

$ $ $ $ $

80,000.00 72,000.00 20,000.00 50,000.00 12,000.00

6,000.00 $ 294,000 $

20,000.00 724,000

Number of paitent visit Average cost per visit

32900 ($724,000 / 32900)

$22

Floor Space and Laboratory Usage, By Department Floor Space (sq. ft.) Department Pediatrics Family Planning Adult medicine Nursing Mental Health Social Services Community health Dental Administration Recordkeeping Laboratory Total

1000 1300 1800 300 1000 500 1100 1000 500 300 1200 10000

Laboratory Usage (hrs. lyr.) 1000 200 2400 100

100 200

4000

Rosemont Hill Health Center Step Down Method Basis of appropriation/ Reappropriation General Information Floor Space (in sq. ft) Laboratory Usage (Hrs/Year) Number of Patient visits

Pediatrics

Family Adult Nursing Planning medicine

1000 1000 5000

1300 200 10000

1800 2400 2100

300 100 4000

$40,000 $16,000 $56,000

$10,000 $30,000 $40,000

$60,000 $32,000 $92,000

$54,000 $12,000 $66,000

Floor Space Floor Space Floor Space

$7,200 $2,000 $1,200 $66,400

$9,360 $2,600 $1,560 $53,520

$12,960 $3,600 $2,160 $110,720

$2,160 $600 $360 $69,120

Salary Usage No. of Patients Working Note 1 Bachelor's Degree 2 MSW's

$9,627 $17,545 $4,026 $9,000 $2,667 $4,000

$2,407 $3,509 $8,052 $9,000 $2,667 $4,000

$14,441 $42,109 $1,691 $18,000 $2,667 $4,000

$12,997 $1,755 $3,221 -$36,000 $2,667 $4,000

Total Costs

$113,265

$83,154

$193,627

$57,758

Cost Per visit (Total Cost/ No. of Patient)

$22.65

$8.32

$92.20

$14.44

Direct Costs Salaries Other Costs Total Costs after allocation

Appropriation of Cost Rent Utlities Cleaning Total Cost after Appropriation

Reappropriation of Cost Administration Laboratory Recordkeeping Nursing Social Service Social Service

Social Services Department Allocation: In the social service department, there are 3 employees, two MSW's and one bachelor's degree social worker. The bachelor's degree social worker divides his time equally among all departments except dental,so, his salary of $16,000 is di The two MSW spend half of their time in other departments except dental. 50% of their costs is divide and allocated into other departments.

Mental Health

Social Community Services health

1000

500

1400

Dental

Record- Laboratory Administration keeping Work

1000 200 6400

300

1200

500

1500

1100 100 2500

$30,000 $16,000 $46,000

$64,000 $16,000 $80,000

$10,000 $20,000 $30,000

$40,000 $20,000 $60,000

$14,000 $6,000 $20,000

$32,000 $18,000 $50,000

$76,000 $4,000 $80,000

$7,200 $2,000 $1,200 $56,400

$3,600 $1,000 $600 $85,200

$7,920 $2,200 $1,320 $41,440

$7,200 $2,000 $1,200 $70,400

$2,160 $600 $360 $23,120

$8,640 $2,400 $1,440 $62,480

$3,600 $1,000 $600 $85,200

$7,220 $0 $1,127 $0 $2,667 $4,000

$15,403 $0 $1,208 $0 -$16,000 -$24,000

$2,407 $1,755 $2,013 $0 $2,667 $4,000

$9,627 $3,509 $5,153 $0 $0 $0

$3,369 $0 -$26,489

$7,702 -$70,182

-$85,200

$71,414

$61,811

$54,281

$88,689

$0

$0

$0

$51.01

$41.21

$21.71

$13.86

o, his salary of $16,000 is divided into 6 parts.

Rent

10000 4000

$72,000 $72,000

-$72,000

$0

Utilities Cleaning

$20,000 $20,000

$12,000 $12,000

-$20,000 $0

-$12,000 $0

Answer to Question 2:

This method that was used by the accountant not good enough as the charges of treating the patients for all departments should Each department has a different level of complex and varied costs as such each department's patient should also be charged diff

Through the implemented step down method, the center can now have better details about total costs for each department and c Department Pediatrics Family Planning Adult medicine Nursing Mental Health Social Services Community health Dental

Cost per Visit $22.65 $8.32 $92.20 $14.44 $51.01 $41.21 $21.71 $13.86

The per visit costs is lowest for Family Planning Department and highest for Adult Medicine.

Before this analysis, RHHC has been charging uniform prices for all patients which is inaccurate and does not properly account RHHC should apply this method of costing so that they can charge more accurate fees to the patients.

s for all departments should not be equal. t should also be charged differently.

ts for each department and cost for each patient visit.

nd does not properly account for the cost incurred by each department.