New Microsoft Excel Worksheet
New Microsoft Excel Worksheet
New Microsoft Excel Worksheet
me per-visit fee.
Rosemont Hill would need a precise calculation of cost per visit in these departments. Likewise, to receive third party reimbursement for pa
Center was intended to provide comprehensive health care to residents of Roxbury and neighboring communities. Eight years after its ince
es. When these operating funds were depleted in 1974, the city of Boston supplemented Rosemont Hill's income with a small three-year gra
as a basis for
arvard Business School, Boston, Mass. 02163. All rights reserved to the contributors. Printed in the USA.
between the health and social services at Rosemont Hill and the schools and city services of the community. The department is staffed by a
age yearly cost of one patient visit. The accountant would first determine the direct cost of each department. He would then add overhead co
ts, the Center's charge had to be held at a reasonable level to keep the health services accessible to as many community residents as possible
I'm not certain how to go about it when determining costs on a departmental basis. Furthermore, it's important to point out that some of ou
eems to help everyone about equally, yet I suppose we might say more administrative time is spent in the departments where we pay more s
for laboratory work on an hourly basis. Since there are two people in the laboratory, each working about 2,000 hours a year, the charge per h
olume would increase by about 10 percent during 1976, spread evenly over each department. He anticipated that costs would also increase b
Total
$ 28,000
20,000
46,000
33,000
23,000
40,000
15,000
30,000
235,000
40,000
36,000
10,000
25,000
6,000
10,000
$362,000
32,900
$11.00
er to be self-sufficient, yet it lacked critical cost information.
third party reimbursement for patient visits, Rosemont Hill's fee schedule had to be reasonably related to costs.
munities. Eight years after its inception, the Health Center maintained strong ties with the community groups responsible for the Center's de
come with a small three-year grant. Because Mr. Mitchell realized that government support could not continue indefinitely, he intended to m
y. The department is staffed by a part-time speech pathologist, a part-time learning specialist, and a full-time nutritionist. The Center has tw
t. He would then add overhead costs, such as administration or rent and utilities, to the total cost of all the departments to determine the Hea
y community residents as possible. Additionally, he anticipated complications in determining the cost per patient visit for each of Rosemont
rtant to point out that some of our departments provide services to others. Nursing, for example. There are three nurses in that department,
epartments where we pay more salaries. Rent, on the other hand, is pretty easy: that can be done on a square-foot basis. We could classify u
000 hours a year, the charge per hour would be about $4.00. But this is a bit unfair, since the laboratory also uses supplies, space and admin
d that costs would also increase by about 10 percent. He asked Mr. Simi to prepare a step down analysis for 1975 so that they would know
s responsible for the Center's development and subsequent acceptance in Roxbury.
nue indefinitely, he intended to make the Health Center self-sufficient as soon as possible. Rosemont Hill's financial statements are contain
e nutritionist. The Center has twenty-two paid employees and a volunteer staff of 6-10 students acquiring clinical and managerial experienc
departments to determine the Health Center's total costs. Finally, he would divide that total by the year's number of patient visits. Increased
three nurses in that department, all earning the same salary. But one works exclusively for Adult Medicine, another divides her time evenly
e-foot basis. We could classify utilities according to usage if we had meters to measure electricity, phone usage and so forth, but because w
o uses supplies, space and administrative time. So we should include those other costs in the laboratory hourly rate. Thus, the process is con
r 1975 so that they would know Rosemont Hill's costs for each department. He planned to use this information to assist him in determining
financial statements are contained in Exhibit 1.
mber of patient visits. Increased by an anticipated inflation figure for the following year (approximately 8 to 10 percent), this number becam
another divides her time evenly between Family Planning and Pediatrics. Only the third spends his entire time in the Nursing Department
sage and so forth, but because we don't we have to do that on a square-foot basis as well. This applies to cleaning too, I guess. It seems to m
rly rate. Thus, the process is confusing and I haven't really decided how to sort it out. However, I have prepared totals for floor space and la
tion to assist him in determining charge fees for the remainder of the year.
o 10 percent), this number became the charge per patient visit for the subsequent year.
time in the Nursing Department seeing patients who don't need a physician, although he occasionally refers patients to physicians. In the So
eaning too, I guess. It seems to me that record keeping can be allocated on the basis of the number of records, and each department generate
pared totals for floor space and laboratory usage (Exhibit 3).
patients to physicians. In the Social Service Department, the situation is more complicated. We have two MSW's, each earning $12,000 a y
ds, and each department generates one record per patient visit.
MSW's, each earning $12,000 a year, and one bachelor degree social worker earning $8,000. The two MSW's yearly see about 1,500 patien
's yearly see about 1,500 patients who need general social work counseling, but they also spend about 50 percent of their time in other dep
percent of their time in other departments. The BA social worker cuts pretty evenly across all departments except dental, of course, where w
xcept dental, of course, where we don't need social work assistance.