Week 4 Assignment prob

54 CHAPTER 6 Cost Classifications

Direct Costs

Cost Object

Indirect Costs

Figure 6-1 Assigning Costs to the Cost Object.

common costs. As a rule of thumb, if the an- .' swer to the following question is "yes;" then the cost is an indirect cost: "Must this cost be allocated in order to be assigned to the (such as a department)?"

EXAMPLES OF. DIRECT COST . AND INDIRECT COST

It is impor~nt for managers to re(:ognh~ . direct and indirect costs and how they' treated on reports. Two sets· of ex:amplc::s:. illustrate the reporting of direct and In<Jurect costs. The first example concerns a cost center; the second concerns an lance service center.

Table 6-1 represents a report of .. direCt cost and indirect cost for a rehab .'. center. The report concerns three of therapy-physical, occupational,

speech therapy-and a total. In this report, the manager can observe the . . differences between direct and indirect costs and can also see the differences three types of therapies.

Greater detail is provided to the manager in Table 6-2, :which presents the allocating indirect costs and the result of such allocation. Managers should ..v ......,...··. the "Total Indirect Costs" in Table 6-2 carry forward and become the "Indirect· Table 6-1. Thus, this report showing allocation of indirect costs is considered a . report because it is supporting, or subsidiary to, the preceding main report. This

D~I~~~~mples'of Rehab Cost Center Direct and Indirect Cost Totais

Rehab Cost Centers

Physical Therapy (PT)

Occupational Therapy (OT)

Speech TheraPY (ST)

Total

Direct Cost

$410,000

190,000

120,000

$720,000

Note: Direct Cost proportions, rounded. are as follows:

. PT '" 57%/OT '" 26"MST '" 17%frotal = 100%

Courtesy of J.J. Baker and R. W. Baker. Dallas. Texas.

Indirect Cost

$107,500

44,000

33,500

$185,000

Examples ofDirect Cost and Indirect Cost 55 ~.

of Indirect Costs Allocated to Rehab Cost Center

Allocation Basis:

Clerical Salaries

A

Administrative Salaries

B

I Computer Services

C

Total Indirect Cost

Indirect Cost to Be Allocated $60,000 $50,000 $75,000 $185,000

Allocated to:

Physical Therapy (PT)

Occupational Therapy (OT)

Speech Therapy (ST)

34,000 28,500

16,000 13,000

10,000 8,500

$60,000 $50,000

45,000 107,500

15,000 44,000

15,000 33,500

$75,000 $185,000

Allocation Key:

. A == # Visits (Volume): PT == 8500/0T == 4000/ST = 2500/Total := 15,000 (15,000 x $4.00 = $60,000) ·8 = Proportion of Direct Costs: PT = 57%/OT = 26%/ST = 17%/Total == 100% (% X $50,000) .C =# Computers in Service: PT ,; 9/0T =31ST =3/Tot~l= 15 (15 x $5,000 each =$75,000)

.bfll""'"'V UlJ.J. Baker and R.W. Baker. Dallas, Texas•

. ,tUore supporting reports to reveal details behind the main report is quite common in .. . The allocation of indirect costs subsidiary report contains quite a lot

Jnt:onlllatlOn. It shows what particular expenses (clerical salaries, administrative salaries, IllIJ'UL.;a services) are contained in the $185,000 total. It also shows how each of tl;lese

.are ·allocated across the three,separate types of therapy. And the report also shows .(':ach item was allocated; see the Allocation Key containing codes A,·B and C.The basis

\callocatI'on is presented in the Key (A = # visits; B = proportion of direct costs, by per­ U<4I""',"-' = number of computers in service) and the computation detail by therapy type

This set of tables is worthy of . ~tudy by the manager..

6-1 sets out the direct costs for ~"JU'<U'"'''' service center. These costs,

·costs, are what the organization's believe-can be traced to the spe­

n ...·., ... " .... of the freestanding center. sets out the indirect costs for

e.St:<lIlCllDl\r ambulance service center. are what the organization's man­

are not directly attributable to operation of the freestanding decisions about what will and be considered direct or indirect

........UU"L always have been made for .3 What is important is that the

u?lderstand two things: first, why

Exhibit 6-1 Example of Ambulance Direct Costs

Ambulance salaries & benefits. $32,500 RN salaries & benefits Vehicle expense Supplies Uniforms Employee education Purchased services Purchased maintenance Utilities & telephone Vehicle depreciation Miscellaneous expense Total direct costs

9,600 21,300 5,000 1,200 3,900 1,900 2,600 5,000

15,000 2,000

$100,000 L--_______________.....

i 466 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS : ".

• Utilities (for the entire facility) • Emergency room medical supplies

~iK'i)~f~~~j~;~~{~<.!~i) . . Study Table 6-1, Table 6-2, and review the chapter text describing how the indirect cost is allocated. This assignment will change the allocation bases input for (A) Number ofVisits , (Volume), (B) Proportion of Direct Costs, and (C) Number of Computers in Service.

Required

1. Compute the costs allocated to cost centers "Clerical Salaries," "Administrative Salaries," and "Computer Services" using the new allocation bases shown below. Use·. ' worksheet #1 that replicates the set up in Table 6-2. Total the new results. ",

The new allocation bases are:

A = # Visits (Volume): PT = 9,600/OT = 4,000/ST 2,400/Total = 16,000 (16,000 X $3.50 = $56,000)

B= Proportion of Direct Costs: PT = 60%/OT 25%/ST 15%/Total = (% X $55,000)

C = # Computers in Service: PT = 10/0T = 3/ST = 3/Total ::: 16 (16 X $5,000 each $80,000).

2. Using worksheet #2 that replicates the set up in Table 6-1, enter the new direct and the new totals for indirect costs resulting from your work. Total the new

Practice Exercise 6-ll: Responsibility Centers

The Metropolis Health System has one director who supervises the areas of lSec:urity, Uo munications, and Ambulance Services. This director also supervises the medical. relevant to Ambulance Services, the educational training for Security and Services personnel, and the human resources for Security, Communications, lance Services personnel.

Required

Of the duties and services described, all of which are supervised by one director ',. areas should be responsibility centers and which areas should be support .. them in a visual and indicate the reporting requirements.

~~~~~:~::~~~~~;e;:2ic in Mhri-~e Study 2, •••... Metropolis Health System information as contained in its Case Study and ' dix that contains its financial statements. Designate the responsibility support centers for the organization selected..Prepare a rationale for the have designed.

l "".C""t'~'5~C.'J':';:::;;"";'-'''''''''':;'';''·;":'::_ . \

Chapter 7 467

CHAPTER 7

Example 7A: Fixed, Variable, and Semivariable Distinction

Review the chapter text for the distinction between fixed, variable, and semivariable costs. Pay particular attention to the accompanying Figures 7-1 through 7-5.

. Practice Exercise 7-1: Analyzing Mixed Costs

The Metropolis Health System (MRS) has a system-wide training course for nurse aides. The course requires a packet of materials that MRS calls the training pack. Due to turnover and because the course is system-wide, there is a monthly demand for new packs. In addition, the

'. local community college also obtains the training packs used in their credit courses from MRS. The education coordinator needs to know how much of the cost is fixed and how much

of the cost is variable for these training packs. She decides to use the high-low method of . computation.

Using the monthly utilization information presented below, find the fixed and variable i:';.··.' "",rnnn of costs through the high-low method.

Number of Month Training Packs Cost

january 1,000 $6,200 February 200 1,820 March 250 2,350 April 400 3,440 May 700 4,900 june 300 2,730 july 150 1,470 August 100 1,010 September 1,100 7,150 October 300 2,850 November 250 2,300 December 100 1,010

i1iiliei:).~;~~r.¢iSe"7;,.··.~~~~~~:~e~J~~~':·::~"·) education coordinator decides that the community college packs may be unduly in­

the high-low computation. She decides to rerun the results, omitting the com­ college volume.

the monthly utilization information presented here, and omitting the commu­ :'nity college training packs, find the fixed and variable portion of costs through the

" '

· ... ; ...:. :;:::'.

468 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTIONS

high-low method. Note that the college only acquires packs in three months of thee 'Ii, year:January, May, and September. These dates coincide with the start dates of their, e semesters and summer school.

2. The reason the education coordinator needs to know how much of the cost is fixed is because she is supposed to collect the appropriate variable cost from the commu­ nity college for their packs. For her purposes, which computation do you believe is better? Why?

/ Total Number of Total Community College Community College

Month Training Packs Cost Number Packs Cost

January 1,000 $6,200 200 $1,240 . February 200 1,820 March 250 2,350 April 400 3,440 May 700 4,900 300 2,100 June 300 2,730

July 150 1,470 August 100 1,010 September 1,100 7,150 300 1,950 October 300 2,850 November 250 2,300 December 100 1,010

Example 7B: Contribution Margin

Computation of a contribution margin is simplified if the fixed and variable '-AII-''-'''''­ already been determined. Examine Table 7-1, which contains Operating Room fixed variable costs. We can see that the total costs are $1,217,756. Of this amount, :!btJllJU;tSZ,~,'IS,'~',;:,;: designated as variable cost and $616,934 is designated as fixed ($529,556 + $87,378 $616,934). For purposes of our example, assume the Operating Room revenue ' $1,260,000. The contribution margin is computed as follows:

Amount Revenue $1,,260,000 Less Variable Cost "(600,822)

Contribution Margin $659,178

Thus, $659,178 is available to contribute to fixed costs and to profit. (In this ex;uIi]P! fIxed costs amount to $616,934, so there is an amount left to contribute toward

Practice Exercise 7-11: Calculating the Contribution Margin

Greenside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3, Of this amount, 40% is variable cost and 60% is fixed cost.

Chapter 8 469

Required

Compute the contribution margin for Greenside Clinic.

(~~~~!i{~i!.~~~ii~1~j.~I~lcAIil¥'~j~2~1iw!~~~~L~~,"~~"::"');:§,j , ~e Mental Health program for the Community Center has just completed its fiscal

year end. The program director detennines that his program has revenue for the year of $1,210,000. He believes his variable expense amounts to $205,000 and he knows his fixed expense ;unounts to $1,100,000. '

Required

1. Compute the contribution margin for the Community Center Mental Health Program. ,

2. What does the result tell you about the program?

Example 7;.,3: Cost-Volume-Profit (CVP) Ratio and Profii-Volume(PV) Ratio

, nosely review the examples of ratio calculations in the chapter text. Also note that, examples are presented in visuals as well as text.

Practice Exercise 7-3: Calculating the PV Ratio

profit-volume (PV) ratio is also known as the contribution margin (CM) ratio. Use the assumptions for the Comml"mity Center Mental Health Program. In addition to the

h;GlI),m,nC'UUiOll margin figures already computed, now compute the PV ratio (also k:rlown as , CMratio).

\"<'4:ssi~tnnlel1lt Exercise 7-3: Calculating the PV Ratio and the CVP Ratio

th~ same assumptions for the Greenside, Clinic. One more assumption will be added: , had 35,000 visits. .

In addition to the contribution margin figures already computed, now compute the PV ratio (also known as the CM ratio). , Add another column to your worksheet and compute the clinic's per-visit revenue and costs. Create a Cost-Volume-Profit chart. Refer to the chapter text along with Figure 7-6.

~lgJunlent Exercise 8-1: FiFO and LIFO Inventory

, the FIFO and LIFO explanations in the chapter.

, ,,

\i;·£:.;~.'~ .. ,1. The Hospital System:; ~:: .~ .

. Metropolis Health System (MH$>::'9.ffers c61tPp~r~llerlsiv'~.ll~'thc~~~;:sieI1ric(~s . a midsize taxing district hospitaVj\}tpough

. through taxes, it has not done so for~:th~past seven '.''',' ,j' ',••

2. The Area,1i::t:'i:'Z(:.:;:·." '. MHS is located in the fOWl of !1etrQ)l6•.~~~;·:W:)j!ipl~!,Q,as

. . town has a small college.,~d a mc~des't:tltil'nbc~r o:t;el'lVi)r9.Plm(~ntally ~;~.~~{,~

:3. MIlS Services;'}(~ , . 'MHS has taken siguifi~t~t~ps to rpc1m:'p .q6~p~~tal . hensive array of senrices tffiric~~e aClcessiEiJei:¢ijJist-1etliective:i\~lnd rC~SlJiOlllSiv'e

". munity's needs. These senric~s~~e., . . . prevention .·rather than treatment. As a r¢sult;of these .' .. . . increased over­

'.' .aU by only 1,000 p~J;,.}{elll':~iri~~:~'®~{wherea:s same-day surgery visits have . had an increasjeQf'6\t€r:50,0,Q9iper:ye~:

A number otHt~gramnlaaC, seI'\1~~;"~n~ facility~~hancements support this major >, ".s : " ."''' . •J ! " - '. 'f',"

trans.ition in th~:\commul!ity's iD:~ti~tio~ahhealth ~are. They are geared to provide . the quality, conxienience,:¥£s)]::&b;bility, ati~ personal care that best suit the health ,needs of the pebJli~ whom ~:serves./'· ...... .' . • Rehabilitationaiid'Wellne;~;Q~ter~for:oUtPatient physical therapy and return­

e' to-work senrifeS;pJ~ql.rdiac and puimonary rehabilitation, to get people back to a no~al ~yof liVi~g..... ". ' ....

: ~ Horri~{H:ealth Senric~bringingsltined care, therapy, and medical social senrices . int~:f'41e hbme;a comfortable and;affordable alternative in longer-term care. Saffie~Day Surgery (SDS)-:eIimiriating the need for an overnight stay. Since 1998, sam~y surgery procedures have doubled at MHS . ...."'"u.:::;u·NursingFacility-"inpatient senrice to assist patients in returning more fully t9 an ind~pendentlifestyle..

393

.\ Background 395

possible by MHS's technologic advancements. MHS also ensures that physicians ani offered seminars, symposiums, and continuing education programs that permit them to remain current with changes in the medical field.

The medical staff's quality improvement program has begun a care pathinitiative to track effective means for diagnosis, treatment, and follow-up. This initiative will help avoid unnecessary or duplicate use of expensive medications or technologies..

9. MHS Foundation Metropolis Health Foundation is presently being created to serve as the philan­ thropic arm of MHS. It will operate in a separate corporation governed by a board of 12 community leaders and supported by a'15-member special events board. The mission of the foundation will be to secure financial and nonfinancial support for realizing the MRS vision of providing comprehensive health care for the community.

Funds donated by individuals, businesses, foundations, and organizations will be designated for a variety of purposes'at MHS, including the operation of specific de­

. partments, community outreach programs, continuing education for employees, en­ dowment, equipment, and capital improvements.

MHS Volunteer Auxiliary '. There are 500 volunteers who provide over 60,000 hours of service to MHS each year.

men and women assist in virtually every part of the system's operations. They : also conduct community programs on behalf of MHS.

The auxiliary funds its programs and makes financiai contributions to MHS through money it raises on renting televisions and vending gifts and otheritems at the hospital. In the pas4 its donations to MRS have generally been designated for :~lclo;;UJ.\.Al equipment purchases. The auxiliary has given $250,000 over the.1ast five

~~aIimilllg' the Future for MHS MHS has identified five areas of desired service and programmatic enhance­ in its five-year strat~gic plan:

, . Ambwatory Services .: <.Physical Medicine and Rehabilitative Services

. Cardiovasc'ular Services ' " Oncology Services • Community Health Services

. has set out to answer the most critical health needs that are specific to its :~"lUUUll.Y. Over the next five year~, the MHS strategic plan will continue a tradition

'·,\.fU,<UU.V. community-oriented health care to meet future demands.

has established a corporate depreciation fund. The fund's purpose is to ease :..UJlarlCl,ll burden of replacing fixed assets. Presently, it has almost $2 million for

'. equipment and renovations.

394 CHAPTER 28 Case Study: Metropolis Health System

• Community Health and Wellness-community health outreach programs that provide educational seminars on a variety of health issues, a diabetes education center, support services for patients with cancer, health awareness events, and a ' women's health resource center.

• Occupational Health Services-helping to reduce workplace injury costs at over 100 area businesses through consultation on injury avoidance and work-specific ,: rehabilitation services.

• Recovery Services-offering mental health services, including substance abuse " programs and support groups, along with individual and family counseling.

4. MIlS's Plant The central building for the hospital is in the center of a two-square-block area. A physicians' office building is to the west. Two administrative offices, converted former residences, are on one corner. The new ambulatory center, completed years ago, has an L shape and sits on one corner of the western block. A maintenance building sits on the extreme back of the property. A four-story garage is located on the eastern back corner. An employee parking lot sits laundry and maintenance building. Visitor parking lots fill the front eastern of the propertY. A helipad is on the extreme western edge of the property behiild physicians' office building.

, 5. MHS Board of Trustees Eight local community leaders who bring diverse skills to the board govern' The trustees generously volunteer their time to plan the strategic direction thus ensuring the system's ability to provide quality comprehensive health care. community.

6. MIlS Management A chief executive officer manages MHS. Seven senior vice presidents r.eport , CEO. MHS is organized into 23 major responsibility centers.

7. MHS Employees , A.1l500 team members employed by MHS are integral to achieving the, dards for which the system strives. The quality improvement program, reestablished in 2010, is aimed at meeting client needs sooner, better, and effectively. Participants in the program are from all areas of the system.

8. MHS Physicians The MHS medical staff is a key part ofMHS's ability to provide excellence,' care. Over 75 physicians cover more than 30 medical specialties. The high their training and their commitment to the practice of medicine are ' the health of the community.

The physicians are very much a part ofMHS's drive for continual . the quality of healthcare services offered in the community. MHS "'_~"'.,'lT1 experts from around the country to provide training in new technllquc

396 CHAPTER 28 Case Study: Metropolis Health System

MHS CASE STUDY

Financial Statements

• Balance Sheet (Exhibit 28-1) • Statement of Revenue and Expense (Exhibit 28-2)

Exhibit 28-1 Balance Sheet

Metropolis Health System Balance Sheet

March 31, 2_

Assets Current Assets Cash and Cash Equivalents $1,150,000 Assets Whose Use Is Limited

Patient Accounts Receivable (Net of$1,300,000 Allowance

for Bad Debts)

Other Receivables

Inventories Prepaid Expenses

825,000

7,400,000

150,000

900,000 200,000

Total Current Assets 10,625,000

Assets Whose Use Is Limited Corporate Funded

Depreciation 1,950,000

Held by Trustee Under Bond Indenture Agreement

Total Assets Whose Use Is Limited

Less Current Portion

Net Assets Whose Use Is Limited

Property, Plant, and Equipment, Net

Other Assets

Total Assets

1,425,000

3,375,000

(825,000)

2,550,000

, 19,300,000

325,000

$32,800,000

Liabilities and Fund Balance Current Liabilities

Current Maturities of Long-Term Debt

Accounts Payable and Accrued Expenses

Bond Interest Payable Reimbursement Settlement

Payable

Total Current Liabilities

Long-Term Debt Less Current Portion of

Long-Term Debt Net Long-Term Debt

Total Liabilities

Fund Balances General Fund

Total Fund Balances

Total Liabilities and Fund Balances

MRS Case Study 397

.&i:bill'tt 28-2 Statement of Revenue and Expense

Metropolis Health System Statement of Revenue and Expense

for the Year Ended March 31, 2_ Revenue

Net patient service revenue Other revenue

Total Operating Revenue Expenses

Nursing services Other professional services General services Support services Depreciation Amortization Interest Provision for doubtful accounts

Total Expenses

Income from Operations

Nonoperating Gains (Losses) Unrestricted gifts and memorials Interest income

. Nonoperating Gains, Net

$34,000,000 1,100,000

$5,025,000 13,100,000 3,200,000 8,300,000 1,900,000

50,000 325,000

1,500,000

$20,000 80,000

. Revenue and Gains in Excess of Expenses and Losses

$35,100,000

33,400,000

$1,700,000

100,000

$1,800,000

,,"U.l',:;uLofCash Flows (Exhibit 28-3) of Changes in,Fund Balance (Exhibit 28-4)

of Property, Plant, and Equipment (Exhibit 28-5) of Patient Revenue (Exhibit 28-6) of Operating Expenses (Exhibit 28-7)

Organizational Structure

Statistical Data (Exhibit 28-8) Practice and Administration Organization Chart (Figure 28-1)

l£xcecutive,..Le Organization Chart (Figure 28-2)

398 CHAPTER 28 . Case Study: Metropolis Health System

Exhibit 28-3 Statement of Cash Flows

Metropolis Health System Statement of Cash Flows .

for the Year Ended March 31,

Statement of Cash Flows

Operating Activities . Income from operations At:ljustments to reconcile income from operations

to net cash flows from operating activities Depreciation and amortization

. Changes in asset and liability accounts Patient accounts receivable Other receivables Inventories Prepaid expenses and other assets Accounts payable and accrued expenses Reduction of bond interest payable Estimated third-party payer settlements

Interest income received. Unrestricted gifts and memorials received

Net cash flow from operating activities

Cash Flows from Capital and Related Financing Activities Repayment of long-term obligations

Cash Flows from Investing Activities Purchase of assets whose use is limited Equipment purchases and building improvements

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents, Beginning ofYear

Cash and Cash Equivalents, End ofYear

$1,700,000

1,950,000

250,000 (50,000) (50,000) (50,000)

(400,000) (25,000) (75,000) 80,000 20,000

$3,350,000 .

(500,000)

(100,000) (2,000,000)

$750,000 .

400,000

$1,150,000 .

MIls Case Study 399

.Exhibit 28-4 Statement of Changes in Fund Balance

Metropolis Health System "1 Statement of Changes in Fund Balance

for the Year Ended March 31,2_

General Fund Balance April I, $19,700,000

Revenue and Gains in Excess of Expenses and Losses 1,800,000.

General Fund Balance March 31, $21,500,000

28-5 Sd;tedule of Property, Plant, and EqUipment

Metropolis Health System &hedule ofProperty, Plant, and Equipment

for the Year Ended March 31, 2_ Buildings and Improvements $14,700,000

Land Improvements 1,100,000

Equipment 28,900,000

Less Accumulated Depreciation (26,100,000)

Net Depreciable Assets $18,600,000

Land 480,000

Construction in Progress 220,000

Net Property, Plant, and EqUipment $19,300,000

400 CHAPTER 28 Case Study: Metropolis Health System

Exhibit 28-6 Schedule of Patient Revenue

Metropolis Health System Schedule of Patient Revenue

for the Year Ended March 31,2_

Patient Services Revenue Routine revenue Laboratory Radiology and CT 'scanner OB-nursery PharmaCy Emergency service Medical and surgical supply and IV Operating rooms Anesthesiology Respiratory therapy Physical therapy EKGandEEG Ambulance service Oxygen· Home health and hospice Substance abuse Other

Subtotal

Less allowances and charity care

Net Patient Service Revenue

$9,850,000 7,375,000 5,825,000

450,000 3,175,000 2,200,000 5,050,000 5,250,000 1,600,000

900,000. 1,475,000 1,050,000

900,000 575,000 .

1,675,000 375,000· 775,000

$48,500,000 .

MHS Case Study 401

:'~~El!dlilllit 28-7 Schedule of Operating Expenses

Metropolis Health System Schedule of Operating Expens('!s for the Year Ended March 31, 2_

Nursing Services General Services Routine Medical/Surgical $3,880,000 Dietary $1,055,000

Room 300,000 Maintenance 1,000,000 395,000 Laundry 295,000 150,000 Housekeeping 470,000 300,000 Security 50,000

$5,025,000 Medical Records 330,000 Total $3,200,000

$2,375,000 Support Services 1,700,000 General $4,600,000 1,375,000 Insurance 240,000

950,000 Payroll Taxes 1,130,000 1,800,000 Employee Welfare 1,900,000

Other 430,000 1,525,000 Total $8,300,000

525,000 700,000 Depreciation 1,900,000 185,000 Amortization 50,000

, 80,000

460,000 Interest Expense 325~000 1,295,000

130,000 Provision for Doubtful $13,100,000 Accounts 1,500,000

Total Operating Expenses $33,400,000

#

402 CHAPTER 28 Case Study: Metropolis Health System

Exhibit 28-8 Hospital Statistical Data

Metropolis Health System Schedule of Hospital Statistics for the Year Ended March 31, 2_

Inpatient Indicators:

Patient Days Medical and surgical Obstetrics Skilled nursing unit

Admissions Adult acute care Newborn Skilled nursing unit

Discharges Adult acute care Newborn Skilled nursing unit

13,650 1,080 4,500

3,610 315 440

3,580 315 445

Average Length of Stay (in days) 4.1

Director of

Nurses

Finance Information

Systems Support

Departmental Volume Indicators:

Respiratory therapy treatments Physical therapy treatments Laboratory workload units

(in thousands) EKGs Cfscans MRI scans Emergency room visits Ambulance trips Home health visits

Ap&:r~mate number of employees

Medical Surgical

Emergency Nursing

Ambulatory Nursing

Women's Health

Figure 28-1 MHS Nursing Practice and Administration Organization Chart. Courtesy of Resource Group, Ltd., Dallas, Texas.

I__~L.~------] ~

Sr. Vice president] Sr. Vice President Humen Affairs Informalion SyslemsiCIO

-~ -~~~===~ Community OUtreach

Community HeaHh Council

CommuniII' Healll1lmprovement

Programs

Info Systems Operations

Data Management

Central auslne.. Olllce

Finance

Re.IEstata I FacilllleSiO""olopment I

I

Figure 28-2 MHS Executive-Level Organization Chart. Courtesy of Resource Group, Ltd., Dallas, Texas.

Sr. Vice President Service Delivery Operations/COO

Inpatient -l Operations ----l

AmbUIa~ Operations I

-;;;-JOperations ~ operau~~1

TOI ----1

PhYSician Recruitment Integration

PhySician Tal