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Western Dialysis Clinic Introduction

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Западная клиника диализа Введение В этом случае описывается система затрат в региональной некоммерческой полноправной клинике почечного диализа. Текущая система, установленная в клинике, основана на традиционном методе соотношения затрат и затрат, который был разработан для государственных программ возмещения затрат. В рамках этой системы расходы на обслуживание распределялись между конкретным отделением на основе процентного вклада этого отдела в доходы клиники. Пациентам предлагалось два типа лечения: гемодиализ (HD) и перитонеальный диализ (PD).

В течение многих лет возмещение клинике производилось на основе заявленных затрат. Однако в 1980-х годах этот механизм был изменен, и теперь компенсация предоставляется на основе фиксированной платы. Поскольку больницы / клиники должны поддерживать затраты ниже этих фиксированных платежей, полученных, чтобы быть прибыльными, становится все более важным использовать правильные методы расчета затрат для более эффективного принятия решений. Этот анализ отражает результаты изменений в системе распределения затрат в западном диализе и предлагает некоторые способы улучшения системы затрат. Проблема

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В клинике в течение нескольких лет использовался метод распределения затрат на услуги по соотношению затрат к оплате. Однако Дэвид Томас, контролер Western Dialysis, не был уверен, приведет ли эта система к правильному распределению расходов между двумя видами лечения на основе услуг, фактически используемых этими видами лечения. Было необходимо понять факторы затрат, связанные с различными центрами затрат, а затем распределить затраты на основе фактического использования этих факторов двумя способами лечения. Цель заключалась в том, чтобы помочь менеджерам принимать более обоснованные решения о расширении или заключении контрактов на продукты и услуги и улучшении процессов.

Этап I Пересмотренный набор оценок затрат и отчетов о прибылях и убытках от обработки для HD и PD представлен в Приложении 2. Новые общие распределения накладных расходов по двум обработкам на основе общих драйверов накладных расходов приведены в Приложении 1. Основное различие между методом распределения затрат RCC и методом ABC фазы I заключается в том, что в первом методе обработки HD приносили прибыль в размере 9 долларов США. 17 на лечение и в рамках метода HD фазы I ABC принесли убыток в размере 5 долларов США. 92. Это произошло потому, что небольшая часть (около 2,5%) общих накладных расходов переместилась с обработок PD на обработки HD.

However, a larger proportion (23%) of the durable equipments and nursing services costs were shifted from PD to HD treatments as these costs were allocated as 85% to HD and 15% to PD. Thus, HD was an unprofitable treatment now. Phase II The revised product-line income statements and profit and loss statement for individual treatments, after allocation of nursing and machine operator resources, is given in Exhibit 4.

The analysis of nursing and machine operator resources is given in Exhibit 3. The new allocation of service expenses drastically changes the profits incurred by the two treatments.

Under the revised cost estimates, HD is allocated $466,610 for general overheads, $116,489 for durable equipment use and $661,966 for nursing services, a total of $1,245,065 as service costs. This reduces the net income of HD treatments to $3,923 from $131,525 under the ratio-of-cost-to charge system. On the other hand, the net income for PD treatments has increased from $93,504 under the old system to $221,106 under ABC system.

The cost allocations are as follows: $319,215 for general overheads, $20,557 as durable equipment use and $221,314 for nursing services, a total of $561,086 as service costs.

Analysis of newly produced information [pic]1st visit to Coursework. info? Welcome! As a welcome gift, you are viewing the the complete version of this essay, to view other documents in full you will need to become a subscriber. [pic] The newly produced information gives some surprising results. In Phase II the nursing costs were also allocated to the two treatments on basis of cost pools and drivers associated with those pools. After Phase II, HD was again profitable however; it was generating an extremely low profit, almost breaking even. The fact that HD again became profitable can be attributed to he extra nursing costs assigned to those treatments during Phase I. About 13%, more nursing costs were assigned to HD. Under the new information produced, we can see that HD generates $0. 27 for each treatment and PD generates $10. 72 per treatment. Thus, the PD treatments are still much more profitable than HD treatments. This should give an alarming signal to the managers to incorporate some cost cutting measures for the HD treatments. Managers can also think of stopping the HD treatments altogether and continue doing the PD treatments, as they are more cost effective considering the fixed reimbursements offered.

If it is not possible for them to stop HD treatments altogether due to the employee termination issues, they should try to reduce the number of Hemodialysis treatments, by either not taking any more new patients or by reducing the number of treatments. They should also focus on taking more patients for the peritoneal dialysis treatments. Another way to reduce HD treatments is to refer the HD patients to some other clinic and take some charge from the other clinic for referring the patients. However, there is a risk involved in all these actions of the staff quitting from there positions or the patients switching to some other clinic.

The best way to deal with this situation is to try to reduce the costs associated with the services offered. As both the treatments are profitable at present, some cost cutting measures can help in increasing the profits for both HD and PD and in this way the clinic would not have to eliminate either of these treatments. Possibility of improvements The changes done in the cost allocation system in Western Dialysis Clinic now gives a better perspective of the actual costs incurred and profits made by each treatment.

David Thomas allocated the general overheads and nursing services costs on basis of the use of these cost pools by the two treatments and not just the percentage contribution of each treatment in total revenues. However, this analysis can be improved by deriving resource pools for the durable equipment costs, like depreciation, maintenance etc, then finding the cost drivers for each pool of resources to see how that resource is used by the two treatments. Then the total durable equipment costs should be allocated to each treatment on basis of their total use of the durable equipment resource pools.

This will give an idea of the actual utilization of these resources by the two treatments. Therefore, instead of allocating 85% of durable equipment costs to HD and 15% to PD, ABC analysis should be applied to allocate durable equipment costs. Summary This case provides an understanding of the treatment costing methods used in healthcare industry and focuses on the issue of deriving right costing method to have knowledge of the actual profits and losses of the different treatments given.

ABC analysis is an effective tool in deriving the proper cost allocations to aid managers in making important decisions such as providing or eliminating alternative procedures or delivery method. Incorrect costing procedures can lead to misleading results that in turn affects managerial decisions and therefore in order to help managers make right decisions and improve the long-term profitability of the health care unit, it is important that new and improved costing techniques are used. Pluszz Answer all four requirements of the case study.

In addition to these requirements you are recommended to exhibit your ability to: 1) Critically evaluate the advantages and drawbacks of traditional costing systems. 2) Compare activity-based costing systems to traditional costing systems. 3) Analyze the circumstances and provide arguments with solid numbered reasoning to support appropriateness of any of the two systems. 4) Foresee and critically assess the implications of moving from one system to another. Table 1 Clinic income statement Total HD PD

Revenues Number of patients                   164                 102                   62   Number of treatments               34 967           14 343           20 624   Total revenue $3 006 775,0 $1 860 287,0 $1 146 488,0 Supply costs Standard supplies (drugs, syringes)             664 900         512 619         152 281   Episodic supplies (for special conditions)             310 695           98 680         212 015   Total supply costs             975 595         611 299         364 296   Service costs

Общие накладные расходы (занятость, администрация) 785825 46610 319 215 Затраты на оборудование (аренда, амортизация) 233226 146 932 86 294 Административный и вспомогательный персонал 354 682 220 595 134 087 Системы связи и медицинские записи 157219 64 489 92 730 Коммунальные услуги 40 698 34 593 6105 Оборудование длительного пользования (техническое обслуживание, амортизация) 137 046 116 489 20 557 Сестринские услуги (RN, LPN, администраторы медсестер, техники) 883280 750 788 132 …

Cite this Western Dialysis Clinic Introduction

Western Dialysis Clinic Introduction. (2019, May 02). Retrieved from https://graduateway.com/western-dialysis-443/

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