As the Chief Financial Officer of a 390-bed general hospital, you are preparing to calculate your room rate for the comi

[answerhappygod]

As The Chief Financial Officer Of A 390 Bed General Hospital You Are Preparing To Calculate Your Room Rate For The Comi 1 (73.62 KiB) Viewed 10 times

As The Chief Financial Officer Of A 390 Bed General Hospital You Are Preparing To Calculate Your Room Rate For The Comi 2 (73.62 KiB) Viewed 10 times

As The Chief Financial Officer Of A 390 Bed General Hospital You Are Preparing To Calculate Your Room Rate For The Comi 3 (73.62 KiB) Viewed 10 times

As the Chief Financial Officer of a 390-bed general hospital, you are preparing to calculate your room rate for the coming year. Currently, your room rate is PhP140.00 and that of the other hospital in town is PhP130.00 but they have announced that their rate will be PhP140.00 next year. The hospital's budget committee has approved budgets for all departments and the full cost for routine services (the cost center associated with the room rate) is PhP16,400,000.00. This cost figure includes PhP55,000.00 to provide charity care which is to be paid for through a special grant. You are budgeting on the assumption of a 5% bad debt rate for bills sent to charge paying patients and 100,000 patient days for the coming year, 80% of which are cost- based reimbursed patients. You anticipate other financial requirements of: PhP 200,000.00 for replacement of equipment, Php 10,000.00 for additional working capital needs, and PhP 100,000.00 for technological improvements. In addition to these financial requirements, you anticipate that the PhilHealth payment constraints, which are not now binding, will begin to bind in the next couple of years, and you would like to set up a reserve of PhP 100,000.00 to hedge against the negative impact of the program. Based upon a simple direct allocation method, you anticipate that 60% of these "Other Financial Requirements" should be covered by the routine service revenue center, i.e., loaded into room rate. Required: Calculate the room rate for this hospital such that it exactly covers the total financial requirements (5 pts).