HCMN415 Healthcare Finance Exam #1 (FA20)
1. Henson Research Hospital offers a variety of procedures for early detection and treatment of various types of cancer. Each stage of cancer involves specific tests and treatments, but also has a varying number of patients. As the new Senior Financial Analyst, you have to advise the executive team on pricing for services offered. The CFO has mandated overhead of $200,000, a quarter of which is to be allocated to services below. Approximately $95,000 in profit is also directly contributed to these services. Use the data provided below to create a fee schedule (list of prices) for services. Overhead should be allocated proportionately to volume, and profit should be allocated proportionately to revenue. (value = 20 points)
2. Fill in the missing items below. (value = 10 points)
3. Dr. Henson is opening an Urgent Care Center near Towson University, and is currently assessing her new site’s financial position. She wants to ensure good, quality care for patients at an affordable price. As the organization’s Senior Financial Analyst, you’re responsible for the evaluation of the following data: (value = 20 points)
Number of Health Screenings: 8,500 Building Construction: $155,000
Staffing/salaries: $185,000 Medical Supplies: $40,000
Utilities: $6,500 Patient Snacks: $20,000
Required patient document delivery to primary physician: $5,000
a) Calculate the initial total costs and variable cost rate.
b) Calculate total costs at 12,000 and 15,000 screenings.
c) Calculate the average costs for 8,500, 12,000 and 15,000 screenings respectively.
4. A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received… only 30% of dividends received by one corporation from another are taxable. Assume that a firm with a 33% tax rate receives $750,000 in dividends from another corporation. What taxes must be paid on this dividend and what is the after-tax amount? (value = 10 points)