Rio Grande Medical Center Cost Allocation Concepts Essay

Patients who use peritoneal dialysis change their own cleansing solutions at home, usually about six times per day. This procedure can be done manually when active or automatically by machine when sleeping. However, the patient’s overall condition, as well as the positioning of the catheter, must be monitored regularly by nurses and technicians at the Dialysis Center (Gapenski, pg. 27-28). The Outpatient Clinic currently takes up 80 percent of the space it shares with the Dialysis Center. The recent growth in volume has created a need of 25 percent more space for the Clinic. Its large size compared to the Dialysis Center and its patients frequent use of other departments in the hospital are justifications as to why it was decided to move the Dialysis Center to another building. Big Bend Medical Center currently doesn’t have adequate space to house the Dialysis Center, so it was also decided to build a new 20,000-square-foot building. This expansion and move were went to benefit both departments and help increase patient volume. The goal of increased patient volume is expected, but the directors and other department heads did not agree with the new allocation of indirect costs. In the past, facilities costs were aggregated, so all departments were charged cost based on the average embedded cost regardless of actual age of the space occupied. Since many department heads considered this

In week 2, I will be answering some questions that are relevant to the company “Central Health Services” selling service contracts for healthcare applicants and equipment. I will be discussing adjusting the accounts, adjustments and ethics also located in our textbook. In conclusion, I will be discussing my overall review of my findings and the difficulty in accrual accounting.

Rio Grande Medical Center is a full service not-for-profit acute care hospital with 325 beds. Most of the hospital’s facilities are devoted to inpatient care and emergency services, but a 100,000-square-foot section of the hospital is devoted to outpatient (OP) services. Of the 100,000-square-foot OP section, the OP Clinic uses 80%/80,000-square-feet, and the remaining 20%/20,000-square-feet are used by the Dialysis Center. Increased patient volume at the OP Clinic has created a need for 25% more space than it is currently assigned. Due to its large size and patients’ need to access other departments the decision has been made to move the Dialysis Center to another location, and allow the OP Clinic to

Question 1 for an average month in 2019, five years hence, assuming that volume is

1.) What is the marginal cost estimate of the Phase 4 hospital services, assuming that 60 percent of the designated costs are fixed and the remaining costs are variable?

Human factors are a serious reason to approach building design from several different angles. Understanding regulatory requirements will help the planning team meet the different codes required to build or remodel. Color selection and noise control affect the environment for both patients and employees so this must be selected carefully to impact the health and wellness of those who are interacting in the health care space. Purchasing the correct the equipment for the space and the employees to use on a daily basis is imperative to the budget of the facility planning process. Identifying the

Communication between nurses at report change is essential. The next nurse needs the most important information whether it is as Situation-Background-Assessment-Recommendation (SBAR) that the Institute for Healthcare Improvement (n.d.) outlines to use or in another form. The case of Rio Grande Regional Hospital Inc v. Villarreal discusses how one nurse breached the standard of care because the record reflects that from the time Hermes was given the double-edged razor until he died neither Nurse Bergado nor any other nurse checked to see how Hermes was doing in the bathroom” (Find Law for Legal Professionals, 2016). At Baylor Scott & White at All Saints, we have a policy that each patient is rounded on physically every hour.

The economic cost for the clinic due to waiting times rise. By taking more time to process the patients, the clinic cannot reach its potential of seeing 108 patients. This of course results in less revenue. Currently the clinic operates at 74% capacity, resulting in a loss of 26% revenue.

3. One source of MHHS’s cash flow problems are the steady staff salaries and benefits in the face of a seasonal industry. Ms. Ringer uses the promise of regular employment for full and part time staff as a recruitment tool, despite the variation in demand for home health services, which is higher in the winter months, but markedly decreased in summer. The seasonal nature of the home health industry, coupled with the steady labor expense, which she is actively expanding, requires Ms. Ringer to utilize a line of credit to cover her staff salaries, as they are not being covered by patient care.

1. Is the profitability or loss of the typical nursing facility in the hands of Medicare and Medicaid system administrators?

3. One source of MHHS’s cash flow problems are the steady staff salaries and benefits in the face of a seasonal industry. Ms. Ringer uses the promise of regular employment for full and part time staff as a recruitment tool, despite the variation in demand for home health services, which is higher in the winter months, but markedly decreased in summer. The seasonal nature of the home health industry, coupled with the steady labor expense, which she is actively expanding, requires Ms. Ringer to utilize a line of credit to cover her staff salaries, as they are not being covered by patient care.

Using the average data given (2010) of 45 patients per day, average $130 revenue per patient, and a cost of $3.50 per patient. The Forecasted P&L Statement is shown below.

2. Analyze the available MD and NP capacity.  How effective is the clinic in matching supply and demand?

The initial intent of this analysis was to identify changes in accounting methods within the financial statements of Walgreens and CVS, as well as to compare and contrast their financial statements, in order to draw conclusions about which company had better earnings. However, in the process of this analysis, with the exception of a minor change to lease accounting by Walgreens, there were no major changes in accounting methods identified. In examining the financial statements for these two drugstore industry leaders, the analysis shows that while each company conducts retail drugstore operations in similar ways, their business models for carrying out these operations greatly vary. These variances in business model

3. How many operations could the hospital perform per day before running out of bed capacity? How well would the new resources be utilized relative to the current operations? Why?