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
Salaries

Number of
patient visits

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

Recordkeeping
Total

76,000.00 $
$
$
32,000.00 $
$
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

Pediatrics

Family
Planning

1000
1000
5000

1300
200
10000

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

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

Floor Space
Floor Space
Floor Space

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

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

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

Total Costs

$113,265

$83,154

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

$22.65

$8.32

General Information
Floor Space (in sq. ft)
Laboratory Usage (Hrs/Year)
Number of Patient visits

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.

Adult
medicine

Nursing

Mental
Health

Social
Services

Community
health

Dental

1800
2400
2100

300
100
4000

1000

500
1500

1000
200
6400

300

1400

1100
100
2500

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

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

$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

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

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

$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

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

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

$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

$193,627

$57,758

$71,414

$61,811

$54,281

$88,689

$0

$92.20

$14.44

$51.01

$41.21

$21.71

$13.86

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

Recordkeeping

Laboratory
Work

Administration

Rent

1200

500

10000
4000

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

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

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

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

$7,702
-$70,182

-$85,200

$0

$0

$72,000
$72,000

Utilities

Cleaning

$20,000
$20,000

$12,000
$12,000

-$72,000
-$20,000
$0

$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.

for all departments should not be equal.

should also be charged differently.
for each department and cost for each patient visit.

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