The administrator of Wright Hospital has presented you with a number of service projections for the year
Question:
The administrator of Wright Hospital has presented you with a number of service projections for the year ending June 30, 20X6. Estimated room requirements for inpatients by type of service are:
Of the patients served by the hospital \(10 \%\) are expected to be Medicare patients, all of whom are expected to select semi-private rooms. Both the number and proportion of Medicare patients have increased over the past five years. Daily rentals per patient are: \(\$ 40\) for a private room, \(\$ 35\) for a semi-private room and \(\$ 25\) for a ward. Operating room charges are based on man-minutes (number of minutes the operating room is in use multiplied by number of personnel assisting in the operation). The per man-minute charges are \(\$ .13\) for inpatients and \(\$ .22\) for outpatients. Studies for the current year show that operations on inpatients are divided as follows:
Prepare schedules showing the computation of:
a. The number of patient days (number of patients multiplied by average stay in hospital) expected by type of patients and service.
b. The total number of person-minutes expected for operating room services for inpatients and outpatients. For inpatients show the breakdown of total operating room person-minutes by type of operation.
c. Expected gross revenue from routine services.
d. Expected gross revenue from operation room services.
Step by Step Answer:
Cost Accounting For Managerial Planning Decision Making And Control
ISBN: 9781516551705
6th Edition
Authors: Woody Liao, Andrew Schiff, Stacy Kline