Preview

Houston Dialysis Center

Satisfactory Essays
Open Document
Open Document
416 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Houston Dialysis Center
Houston Dialysis Center

1. I do not find it “fair” for the Dialysis Center to suffer in profit and hence at the idea that Linda may lose her bonus at the expense of the Outpatients Clinic. I believe here you have the perfect opportunity to distribute allocation to both the Dialysis Center and Outpatients Clinic in order to see a net profit from the additional space of the Outpatient Clinic. By taking advantage of the new Dialysis Center facility it could be a consideration to allocate funds that would suit a larger volume of patients, in order to see a profit.

2. I do not support the new allocation scheme, with the idea that, it is requiring the Dialysis Center to provide the true facility cost prior to the allocation of the total amount. In a situation where the true cost, in the end is either more or less then what the medical center planned for can cause issues with the total revenue and may effect the profit if additional cost is needed. An advantage of this, is that the medical center is not allocating more of the aggregated funds then what is needed.

3. In 20 years, when the loan has been paid off and there are no longer any actual facilities cost. The facilities allocation to the Dialysis Center would change drastically with an increase in the general overhead of the Outpatient Clinic leaving allocations for the upkeep of the Dialysis Center, along with, direct expenses.

4. Followed by the Dialysis Center’s move to a new facility, that’s two blocks away from the hospital complex, I do believe we would see a noticeable increase in the attraction of patients. With an increase in patients, the facility would have to allocate funds for accommodating a larger volume of patients by increasing the number of station, the amount of personnel that is on staff, and also purchasing additional equipment.

5. It does seem fair because the pharmacy is recording an accurate amount of revenue and cost on its P&L statement. The idea for these centers to not

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Should the Dialysis Center be charged actual facilities costs for its new location? After all, the move was forced by the Outpatient Clinic, which is being charged for facilities at the lower average allocation rate. Under the concept of charging for actual facilities costs, department heads may be better off resisting proposed moves to new (and potentially more efficient) facilities because such moves would result in increased facilities allocations.…

    • 510 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Nt1310 Unit 1 Assignment

    • 1754 Words
    • 8 Pages

    Additional challenges arise when multiple service centers use each other’s services choice of apportion base – determination of costs to be allocated). Even assuming all allocated costs are relevant and the apportion base is well specified, this presents a difficult goal to achieve.…

    • 1754 Words
    • 8 Pages
    Best Essays
  • Better Essays

    The simulation in question deals with the Elijah Heart Center in New York State. The simulation covers three very distinction aspects of healthcare financial decisions that an administrator may have to make. First, a capital shortage and cost cutting techniques are delved into. What techniques can be employed that will provide adequate savings without significantly affecting the quality of care afforded to each patient? Next, the most cost effective equipment selections will be explored. What equipment should be bought; what equipment should be leased? Finally, there is a peak at the various funding methods available. What method is the best option for the long term of the organization?…

    • 1066 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    2 a What is the allocation rate if patient services revenue is used as the cost driver?…

    • 1180 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Blue Point Healthcare has more than one million enrollees and operates in as many as 25 different plans in which the company provides healthcare services. The company has also shown its interests to offer health care coverage to a consortium consisting of 75000 employees. For this reason Blue Point health has presented its bid for the premium amount that is required to be paid by the consortium for health coverage of its employees. The bid for the health premium has been presented on a per member per month basis (Harris, 2011). The bid also include the coverage of individuals and their families. It has been assumed that 1 family would consist of 3.5 members on an average. In order to divide the allocation of premium, 12000 members and 18000 families have been considered in this bid. In scenery the specific premium rates, Blue Pointe ensured that the total premiums collected, which would be paid by both the employer and employees, equal the estimated total calculated using the PMPM rate. Thus, 75,000 × Total PMPM amount must equal (12,000× Single premium) + (18,000× Family premium).The total value of premium of the all the employees in the consortia for the proposed health coverage has been represented in the table given…

    • 1322 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    You have been the CEO of Middlefield Hospital for 2 1/2 years and finally resolved the workforce challenges that plagued the hospital when you first arrived. In a recent meeting, the chief financial officer (CFO) indicated that the financial performance of the hospital has been deteriorating over the last 6 months. The hospital is not meeting its budget and he is concerned about the future. The new facility across town has continued to cut into Middlefield 's market share by admitting more patients. The number of admissions to Middlefield Hospital is declining each month, and more uninsured patients are seeking services at your facility. You convene the Middlefield Hospital management team and discover a few interesting facts, which are identified below.…

    • 2491 Words
    • 10 Pages
    Good Essays
  • Good Essays

    The budget for the Grant Center assumes a linear relationship between the number of student visitors and the daily operating cost of the center. Some sample (number of students, operating cost) values are given in the table below.…

    • 1364 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    1. Middleton Clinic had total assets of 500,000 and an equity balance of 350,000 at the end of 2010. One year late, at the end of 2011, the clinic had 576,000$ in assets and 380,000 $ in equity. What was the clinic’s dollar growth in assets during 2011, and how was this growth financed?…

    • 368 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Gilles Laboratory

    • 473 Words
    • 2 Pages

    Arbitrary cost allocation, which needs to be investigated. Handling charges should not be allocated based on inventory levels. Students should use this cost in their analysis, but should understand the need to question its accuracy.…

    • 473 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Food Booth

    • 866 Words
    • 4 Pages

    A) Formulate and solve a linear programming model for Julia that will help you advise her if she should lease the booth.…

    • 866 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    In phase one simulation, I was to decide on what cost-cutting option to choose from that would solve the cash flow at Elijah Heart Center (EHC). In addition to choosing a loan option that will cover any capital shortfall that would occur. Once these choices were made, I then had to explain why I chose the options and what were there outcome.…

    • 1244 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    We believe the system proposed by the consultant is the best one among three systems. Two-stage cost allocation system would alleviate the problem stated above, since more than…

    • 515 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Healthxcare

    • 669 Words
    • 3 Pages

    Capitation has a dramatic impact on provider incentives, and hence on provider behavior. Consider Figures 5.3 and 5.5 in the textbook, which depict revenues and costs to Atlanta Clinic under fee-for-service and capitation. Regardless of the payment system, total costs (TC), which are merely the sum of fixed costs (FC) and variable costs (VC), are tied directly to volume, so the greater the volume of services delivered, the greater the amount of total costs. The difference between the two figures is the total revenues line, and how profits and losses are realized. Under fee-for-service (Figure 5.3), the revenues line is upward sloping, and it starts at the origin. At zero volume, the provider receives zero revenue, but at any positive volume, the greater the volume, the higher the revenue. Under capitation (Figure 5.5), assuming a fixed number of enrollees, total revenues are fixed independently of volume, and hence the revenue line is horizontal. On each graph, breakeven occurs when total revenues equal total costs.…

    • 669 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Q1: Given the capacity planning discussion in the text (see Figure S7.6) what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand? Answer: The approach that is being taken toward matching capacity to demanding is the Leading Strategy  Management leads capacity incrementally  Management could also add new capacity which allow it to stay ahead of demand…

    • 472 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The building of the new facility is not expected to affect revenue, direct cost and patient volume. The Dialysis Center will provide the same services for its patients, but with different location of the facility. There is no reason for the personnel of the facility to be penalized financially, since the decision for the relocation of the building was taken due to recent growth in volume of the Outpatient Clinic.…

    • 1574 Words
    • 7 Pages
    Powerful Essays