Determine the cost per patient visit for each type of patient visit at the clinic. All types of visits are given in the same clinic, but about 60% of the space is used for child visits (half ill half well) and 40% for adult visits (half ill half well). Doctors and nurses traced their hours using time cards.
Well-childIll-childWell-adultIll-adult
# patient visits180320100220
Doctor hours40 hours30 hours20 hours40 hours
Nurse hours50 hours50 hours20 hours30 hours
Costs of the entire clinic:
Clinic Rent $ 10,000 Allocate based on space used
Liability insurance
1,000 Allocate based on doctor hours
Administration
6,000 Allocate based on # visits
Doctor salaries
18,200 Trace as $140 per hour
Nurse salaries
7,500 Trace as $50 per hour
Medical supplies
3,280 Trace as $4 per patient visit
Total $45,980
Well Child
Ill Child
Well Adult
Ill Adult
TOTAL
Direct
Doctor Sal
Direct
Nurse Sal
Direct
Med Supp
Indirect Rent
Indirect Liab Ins
Indirect Admin
Total
Per unit
Does this mean if the clinic provided one additional well child visit, the total costs of the clinic would increase by the per unit cost you determined above? Why or why not?
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