Financial Management I Worksheet - Part 1

Case Scenario 1: Hospitals A, B, and Care the same with the exception of their treatment of internal charges.

The foodservice department at Hospital A does not charge the cost of ward supplies, nourishments, and catering to the receiving departments.

Hospital B permits the transfer credit of floor stock, nourishments, and catering at the equivalent raw food cost.

Hospital C is managed by a contract foodservice company. Floor stock and nourishments are charged to the receiving department units at raw food cost, but internal catering is charged at the same markup as the external catering as part of the company's agreement with administration. This contractual agreement is often a result of an incentive- based fee structure that awards a contractor a percentage of revenue.

	Hospital A	What is the gross department expense per patient day at each hospital?	Hospital C
Patient days TYD:	20,000		20,000
Gross Dept expenses:	$700,000		$700,000
	YTD Food Cost	YTD Sales & Charges	YTD Food Cost	YTD Sales & Charges	YTD Food Cost	YTD Sales & Charges
Floor stock, nourishments	$15,000	$0.00	$15,000	$15,000	$15,000	$15,000
Internal catering	$30,000	$0.00	$30,000	$30,000	$30,000	$75,000
Catering cash	$10,000	$ 25,000	$10,000	$ 25,000	$10,000	$ 25,000
Cafeteria cash	$68,000	$150,000	$68,000	$150,000	$68,000	$150,000
Vending cash	$10,000	$ 20,000	$10,000	$ 20,000	$10,000	$ 20,000

1. What is the gross department expense per patient day at each hospital?