Hospitals A, B, and C are the samewith the exception of their treatment of internalcharges.
The foodservice department at Hospital A doesnot charge the cost of ward supplies, nourishments, and catering tothe receiving departments.
Hospital B permits the transfer credit of floorstock, nourishments, and catering at the equivalent raw foodcost.
Hospital C is managed by a contract foodservicecompany. Floor stock and nourishments are charged to the receivingdepartment units at raw food cost, but internal catering is chargedat the same markup as the external catering as part of thecompany’s agreement with administration. This contractual agreementis often a result of an incentive- based fee structure that awardsa contractor a percentage of revenue.
|
Hospital A |
Hospital B |
Hospital C |
||||
|
Patient days TYD: |
20,000 |
20,000 |
20,000 |
|||
|
Gross Dept expenses: |
$700,000 |
$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 |
Note: YTD = Year-to-Date
Answer the following questions:
- Which hospital earned the highest revenue?
- Which hospital has the lowest revenue per patientday?
- Which hospital has a Food Cost Percentage of 55.41%?
- Based on the gross department expenses at the hospitals, totalfood cost represents what percentage gross expenses.
- What is the gross department expense per patient day at eachhospital?
- What is the sales mix ratio of internal catering at HospitalC?
- How would you describe the effects of charging a “mark-up” forinternal catering and YTD sales & charges?
