1. General Hospital, a not for profit acute care facility, has the following cost structure for its inpatient services: FIxed costs $10,0000,00Variable cost per inpatient day $200Charge (revenue) per in patient day $1,000The hospital expects to have a patient load of $15,000 inpatient days next year.a. Construct the hospital's base case projected P&L statement.b. What is the hospital's breakeven point?c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now assume that 20 percent of the hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?
I have one more question that I need help with. Can I give you the question with supplemental spread sheet and give you 70 for both?
St. Benedict’s Hospital has three support departments and four patient services departments.The direct costs to each of the support departments are:General Administration $2,000,000Facilities 5,000,000Financial Services 3,000,000Selected data for the three support and four patient services departments are as follows:Patient SpaceServices (Square Housekeeping SalaryDepartment Revenue Feet) Labor Hours DollarsSupport:General 10,000 2,000 $1,500,000AdministrationFacilities 20,000 5,000 3,000,000Financial Services 15,000 3,000 2,000,000Total 45,000 10,000 $6,500,000Patient Services:Routine Care $30,000,000 400,000 150,000 $12,000,000Intensive Care 4,000,000 40,000 30,000 5,000,000Diagnostic Services 6,000,000 60,000 15,000 6,000,000Other Services 10,000,000 100,000 25,000 7,000,000Total $50,000,000 600,000 220,000 $30,000,000Grand total $50,000,000 645,000 230,000 $36,500,000 Assume that the hospital uses the direct method for cost allocation. Furthermore, thecost driver for General Administration and Financial Services is patient services revenue,while the cost driver for Facilities is space utilization.a.What are the appropriate allocation rates?b. Allocate the hospital’s overhead costs to the patient services departments.
Assignment 3.2: Week Three Review, Part 2
Patient Services Department
Total Indirect Costs
Here is a pdf of the statement... THANKS for your help!
The allocation is the first first solution next to the title, correct?
Yes, gen admin, facilities, financial services...and so forth. The titles to the left
Ok, I am not sure if I did this correctly... please let me know if you received a total of $72.
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