Question

Student Name: Please type your answers to each of the questions next to each question below. Please be sure to show your work, as this may allow for partial credit if your final answer is incorrect! 1) For the healthcare unit below, calculate the Total Revenue, Total Expenses, and Profit (5 pts each) Revenues (Income Sources) Amount 2,750,400 250,000 Patient Revenue Charitable Donations Total Revenue Expenses Labor costs 1,675,000 Direct Patient Care $1,550,000 $ 125,000 Administrative Patient Care Supplies 655,000 Housekeeping 51,000 32,000 Utilities Total Expenses Profit Based upon the profit you calculated, can this healthcare unit afford to purchase new ceiling lifts for their patient care rooms? Yes or No. 2. Each lift costs $8000 and there are 25 beds. Due to the high cost of these items, would they most likely come from the operating budget or the capital budget? (5 pts) Which of the expenses above are fixed costs? (5 pts) 3. Which of the expenses above are variable costs? (5 pts) 4. This unit has 25 beds, and the average daily census (ADC) is 22 patients. What is the occupancy rate for beds? (10 pts) 5. Based on the ADC above, and the fact that this unit is open 24/7, what are the annual patient 6. days? (10 pts)

Answer 1

1st Answer:

Patient Revenue	2750400
Charitable Donations	250000
Total Revenue	3000400
Labour Costs	1675000
Patient care Supplies	655000
Housekeeping	51000
Utilities	32000
Total Expenses	2413000
Total Revenue	3000400
Total Expenses	2413000
Profit	587400

2nd Answer: Yes they can purchase new ceiling lifts since 8000 X 25 = 200,000. Operating Budget would be used for the purchases of new ceiling lifts.

3rd Answer: Utilities and House-keeping are fixed costs. They change only after long duration and mostly fixed in nature.

4th Answer: Direct Patient care, Administrative costs and Patient care supplies are variable costs. These costs vary for different period of time.

5th Answer: Occupancy rate = ADC / Total beds available X 100 = 22/25 X 100 = 88% is the Occupancy rate.

6th Answer: Annual Patient days = ADC X 365 / Number of beds available

= 22 X 365 / 25 = 321.20 days or 321 days