Rio Grande Medical Center Case Study

face Study 3 Rio Grande Medical shopping center-Cost parceling Concepts 1) Is it fair for the Dialysis halfway to suffer (in favourableness) from the prevail even though it had nothing to do with it? I do not hold that the Dialysis message suffering in pull inability from the journey is fair. Being that the Dialysis boil down was go as a closure of the Outpatient Clinics aim for extra space, I do bring forward that some of the be of the natural build and the relocation of the Dialysis Center should be nonrecreational through the Outpatient Center (a buy show up).The fact that the indirect cost of the Dialysis Center are going up totally because of the fact that they were forced out to deem the Outpatient Center, forcing them into the red, is simply unfair and bad practice. 2) Should the Dialysis Center be aerated actual facilities costs for its new location? After all, the move was forced by the Outpatient Clinic, which is being charged for facilities at the low er average parcelling rate.Under the imagination of charging for actual facilities costs, department heads whitethorn be better off resisting proposed moves to new (and potentially more efficient) facilities because such moves would result in increased facilities allocations. Without the expansion, the Dialysis Center was stipendiary $300,000 in facilities costs ($15 per shape foot x 20,000 uncoiled feet). With the expansion, the Dialysis Center is collapseing $400,000 in facilities costs, $100,000 more solely because of the move forced upon them due to the Outpatient Centers submit for more space.I believe that the Dialysis Center should pay the same cadence in facilities costs considering that they would have the same amount of square footage as they did before the move. All or at least a section of the additional $100,000 in facilities costs should be absorbed by the Outpatient Center, not further did they force the Dialysis Center out, scarcely they to a fault have an expected 25 part increase in volume temporary hookup the Dialysis Center is expected to have no increases at all. 3)Even if the true cost concept were applied to the Dialysis Center, is the 400,000 annual allocation amount correct? After all, the building has a useful brio that is probably importantly longer than 20 years the life of the loan used to determine the allocation amount. If the true cost concept is applied, what would be the allocation in the 21st year, later the mortgage had been paid off? 4) The tax revenue that the Dialysis Center receives from patient use of the pharmaceutics appears to be passed on directly to the pharmaceutics.That is, the Dialysis Center books $800,000 in annual revenue but then is charged $800,000 for the drugs used. Should this revenue be counted when general overhead allocations are do? To make this point, John discovered that the chemists supplies used for dialysis actually cost the pharmacy $400,000, so the pharmacy makes a profit o f $400,000 on drugs that are actually change by the Dialysis Center.