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1 . A costing study of a publicly run primary care clinic reported the following cost numbers. Although the clinic is autonomous, it is directly

1. A costing study of a publicly run primary care clinic reported the following cost numbers. Although the clinic is autonomous, it is directly under the supervision of the regional department of health (RDOH). Patients get their services from the clinic by paying $2 per visit (see VII.2 You can figure out the number of visits.) and 10% of the total value of drugs received [copy and paste the following table into an excel sheet]
I. Personnel costs for the clinic (Year 2019)
I.1 Salary and benefits of doctors and nurses working in the clinic $540,000
I.2 Value of time of voluntary service provided by doctors and nurses: $105,000
I.3 Salary and benefits of the administrative staff of the clinic $245,000
I.4 Salary and benefits of other personnel in the clinic $175,000
II. Drugs and supplies (Year 2017)
II.1 Total value of drugs dispensed from the clinic $321,000
II.2 Drugs donated by a Foundation (dispensed in clinic) $120,000
II.3 Other supplies purchased by and used in the clinic $145,000
III. Transportation costs, excluding capital costs (Year 2018)
III.1 Transport of drugs and supplies paid by the health clinic $14,200
III.2 Transport of drugs and supplies paid by the foundation $5,300
III.3 Transport costs incurred by patients and patients families $94,500
IV. Utilities (water, gas, electricity),2019 $25,450
V. Capital costs at the clinic (2019)(5% annual interest rate for 5 years) $39,500
VI. Cost at the RDOH level (2019)
VI.1 Capital costs at the RDOH (6% annual interest rate for 10 years) $185,200
VI.2 Salary and benefits of personnel at RDOH $995,500
VI.3 Transportation cost at the RDOH level for supervision $75,000
VII. Other costs
VII.1 Money paid by patients to get drugs from the clinic (2017) $32,100
VII.2 Amount paid by patients for services at clinic (2019) $20,000
VII.3 Value of time of patients used for seeking care (2016) $99,500
VII.4 Food expenses incurred by patients for seeking care (2015) $15,700
(a) We want to estimate the cost for the clinic in terms of 2019 prices. The inflation rates in the country were: In 2006 prices increased by 5% over 2015,2007 prices were 4% higher than 2016,2018 prices were 7% higher than 2017 and 2019 prices were 8% higher than 2018. Convert all the cost items in the table above into 2019 prices.
(b) A survey found that 20% of RDOH costs mentioned in the table are used for supervision of primary healthcare clinics in the area. The RDOH supervises 25 clinics in the area and the total cost of RDOH supervision can be subdivided among the clinics equally. Calculate the following unit costs:
(i) Cost per visit from the perspective of the primary care health clinic.
(ii) Cost per visit from the perspective of patients/households
(iii) Cost per visit at the clinic from the societal perspective
For each of the above calculations, indicate the items you are including and explain the reasons for inclusion and exclusion.

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