Edition by Louis Gapenski. This sample contains the case questions, case solutions, instructor model, and PowerPoints for Chapter 4.
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Cases in Healthcare Finance Case Questions
© Health Administration Press, 2010. Reproduction without permission is prohibited.
CASE 4 QUESTIONS
APPLE VALLEY FAMILY PRACTICE
Cost Allocation Methods
1. Briefly describe the differences in the four allocation methods discussed in the case. (Hint: Don’t discuss the mathematics of the schemes, but rather how they differ conceptually.) Which of the four methods is conceptually the most reasonable?
2. What are the allocations to each patient services department, and resulting profitability, under the four allocation methods using the base case cost amounts (Exhibit 4.1) and allocation rates (Exhibit 4.2)?
3. Now consider the sensitivity of the results to changes in the values of the overhead cost pools. Repeat Question 2, but now use the overhead cost pool amounts