Department No.

of patient visits Salary ($) Other ($) Given

total
Department
Floor Space
(sq. feet)
Lab usage
(hours/year)
Pediatrics 5000 20000 8000 28000 Pediatrics 1000 1000
Family planning 10000 5000 15000 20000 Family planning 1300 200
Adult medicine 2100 30000 16000 46000 Adult medicine 1800 2400
Nursing 4000 27000 6000 33000 Nursing 300 100
Mental Health 1400 15000 8000 23000 Mental Health 1000 0
Social services 1500 32000 8000 40000 Social services 500 0
Community health 2500 5000 10000 15000 Community health 1100 100
Dental 6400 20000 10000 30000 Dental 1000 200
Subtotal 32900 154000 235000 8000
Admistration 38000 2000 40000 Adminstration 500 0
Rent 36000 36000 Record keeping 300 0
Utilities 10000 10000 Laboratory 1200 0
Laboratory work 16000 9000 25000 10000 4000
Cleaning 6000 6000
Record keeping 7000 3000 10000
Total 362000
No of patients visits 32900
Avg cost per visit 11
Calculation backup
Total Patients
Attended
10000
Salary expense 5000
Salary Cost taken
from Nursing
department
4500
Salary Cost taken
from Social Service
department
4965
12000 divided in ratio of no. of
patients(10000/(32900-1500)*12000) + (8000/7)
Total Salary expense 14465
Otherexpense 15000
Exibit 2 : Cost & patient visits in 1975 Exibit 3 ; Floor Space & lab usage by department
FOR THE FAMILY PLANNING DEPARTMENT
2 MSW's social workers divide their 50% of their
salary($12000) in ratio of number of patients & one BA
social worker divides his salary($8000) evenly in 7
departments (except dental)
1 nurse salary ($9000)Distributed between Family
planning($4500) & Pediatrics($4500) evenly
REMARKS
Other expense taken
from Nursing
department
1000
Other expense taken
from Social Service
department
1241
3000 divided in ratio of no. of patients(10000/(32900-
1500))*3000 + (2000/7)
Total Other expense 17241
Total Salary + other
expenses
31706
ADMINISTRATIVE
COST: 3757 (14465/154000)*40000
RENT 5850 (1300/8000)*36000
UTILITIES +
CLEANING 2600 (1300/8000) )*(10000+6000)
LAB WORK
1250
(No. of hours x lab people salary/hour ) + (Other cost
X % lab time consumed)
4X200 + (200/4000)*9000
RECORD KEEPING 3040 (10000/329000) *10000
EFFECTIVE COST 48203
TOTAL PATIENTS: 10000
EFFECTIVE COST PER
PATIENT 4.82
CONCLUSION: As per new cost accounting method, Cost of Family planning department is $4.82 / Per patient.
But as per current cost accounting method Avg cost per patient for family planing department is shown as 11$.
Our earlier cost 110000
Extra cost of other
departments that
we are bearing 61797
So, we are bearing additional cost (6$ per patient) of Pedatrics,Adult medicine, Mental Health,Social services & Community health deapartments.
Calculation
Old given cost - new
calculated cost
(=110000-48203)
Other expense of 1 nurse ($2000)Distributed between
Family planning($1000) & Pediatrics($1000) evenly
2 MSW's social workers divide their 50% of their other
expense($3000) in ratio of number of patients & one BA
social worker divides his other expense($2000) evenly in
7 departments (except dental)
RATIO OF SALARIES
SQUARE FOOT BASIS
SQUARE FOOT BASIS
HOUR BASIS
RATIO OF PATIENTS
Distribution of our
extra cost among
other departments
Ratio of per patient
cost
Departments Per patient cost of departments incurring more than
$11/per patient cost
Per patient EXTRA
cost of
departments
incurring more
than $11/per
patient cost ( Per
patient cost - $11)
Pediatrics 768 Pediatrics 11.7 0.7
Adult medicine 39186 Adult medicine 46.7 35.7
Mental health 16465 Mental health 26 15
Social services 5159 Social services 15.7 4.7
Community health 220 Community health 11.2 0.2
Total sum 111.3 56.3
(=0.2/56.3 * 61797)
Calculation (Remarks)
(=0.7/56.3 * 61797)
(=35.7/56.3 * 61797)
(=15/56.3 * 61797)
(=4.7/56.3 * 61797)
11.7
4.8
46.4
5.3
26.0
15.7
11.2
7.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
C
o
s
t

p
e
r

p
a
t
i
e
n
t
s

Departments
Cost per patient
Cost per patient
Department No. of patient visits Salary ($) Other ($) Given total expense ($)
(Salary+Others)
Salary change due to
nurses serving for other
departments
Salary change due to
Social workers serving for
other departments
Corrected salary Other expenses due to
change in nurses working
for other departements
Other expense change due
to social workers
Pediatrics 5000 20000 8000 28000 4500 3054 27554 1000 763
Family planning 10000 5000 15000 20000 4500 4965 14465 1000 1241
Adult medicine 2100 30000 16000 46000 9000 1945 40945 2000 486
Nursing 4000 27000 6000 33000 -18000 2672 11672 -4000 668
Mental Health 1400 15000 8000 23000 0 1678 16678 0 419
Social services 1500 32000 8000 40000 0 -18857 13143 0 -4714
Community health 2500 5000 10000 15000 0 2098 7098 0 525
Dental 6400 20000 10000 30000 0 2446 22446 0 611
Subtotal 32900 154000 235000 154000
Admistration 38000 2000 40000
Rent 36000 36000
Utilities 10000 10000
Laboratory work 16000 9000 25000
Cleaning 6000 6000
Record keeping 7000 3000 10000
Total 362000
No of patients visits 32900
Avg cost per visit 11
Department
Floor Space
(sq. feet)
Lab usage
(hours/year)
Pediatrics 1000 1000
Family planning 1300 200
Adult medicine 1800 2400
Nursing 300 100
Mental Health 1000 0
Social services 500 0
Community health 1100 100
Dental 1000 200
8000
Adminstration 500 0
Record keeping 300 0
Laboratory 1200 0
10000 4000
Rate of people working in
lab ($/hour) 4
Exibit 3 ; Floor Space & lab usage by department
Exibit 2 : Cost & patient visits in 1975 Expenses
11.7
4.8
46.4
5.3
26.0
15.7
11.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Pediatrics Family
planning
Adult
medicine
Nursing Mental
Health
Social
services
Community
health
C
o
s
t

p
e
r
p
a
t
i
e
n
t
s

Departments
Cost per patient
Corrected Other expense Corrected total expense
(Corrected Salary +
corrected other expense)
Adminstration ($)
(% salary X
Adminstration expense)
Rent ($)
(% sq ft X total rent)
Utilities +Cleaning ($)
(% sq ft X Utility
expense)
Recordkeeping ($)
(% patients X
recordkeeping expense)
Department wise
Laboratory expense
($)
(No. of hours x lab
people salary/hour ) +
(Other cost X % lab
time consumed)
Actual
total
customer
service
departme
ntal
expense
Average actual
cost per visit
($)
(actual total
expense / No
of patients)
Charge per patient($)
(Revenue / no. of
patients)
9763 37317 7157 4500 2000 1520 6250 58744 11.7 10.5
17241 31706 3757 5850 2600 3040 1250 48202 4.8 10.5
18486 59432 10635 8100 3600 638 15000 97405 46.4 10.5
2668 14339 3032 1350 600 1216 625 21162 5.3 10.5
8419 25097 4332 4500 2000 426 0 36355 26.0 10.5
3286 16429 3414 2250 1000 456 0 23548 15.7 10.5
10525 17623 1844 4950 2200 760 625 28001 11.2 10.5
10611 33057 5830 4500 2000 1945 1250 48583 7.6 10.5
235000 40000 36000 16000 10000 25000 362000
1800 0
4320 0
1080 0
Pediatrics
9%
Family planning
4%
Adult
medicine
36%
Nursing
4%
Mental
Health
20%
Social services
12%
Community
health
9%
Dental
6%
Expense-department wise (Average
actual cost per visit)
Nursing
12%
Mental Health
4%
Social services
5%
Community
health
8%
Dental
20%
Revenue - department wise
11.2
7.6
Community
health
Dental
Cost per patient