Homework: Healthcare Finance Essay

7.2

The audiology department at Randall Clinic offers many services to the clinics patients. The three most common, along with cost and utilization data, are as follows:

ORDER CUSTOM, PLAGIARISM-FREE PAPER

Service Variable Cost per service Annual Direct Fixed Costs Annual Number of visits

Basic examination $5 $50,000 3,000

Advanced examination $7 $30,000 1,500

Therapy session $ 10 $40,000 500

Overhead allocation = (3000/5000) * $50,000 = 30,000

b. Assume that the audiology department is allocated $100,000 in total overhead by clinic, and the department director has allocated $50,000 of this amount to the three services listed above. What is the fee schedule assuming that these overhead costs must be covered? (To answer this question, assume that the allocation of overhead costs to each service is made on the basis of number of visits.)

c. Assume that these services must make a combined profit of $25,000. Now what is the fee schedule? (To answer this question, assume that the profit requirement is allocated in the same way as overhead costs.)

You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.

Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.

Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.

The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument. Homework: Healthcare Finance Essay

Homework: Healthcare Finance Essay