Rosemont Hill Health Center

Harvard Business School Case #178-189

Case Software #XLS-465

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Exhibit 1 Financial Statements for 1975

Balance Sheet
As of December 31,1975
Assets Liabilities and Fund Balances
Cash 30,934 Accounts Payable 32,754
Accounts Receivable 8,800 Accrued wages 3,466
Inventory 40,540 Total Current 36,220
Total Current 80,274
Bank Loan 27,550
Furniture & Equipment 21,700 Total Liabilities 63,770
Less: Accumulated
Depreciation 8,788 Fund Balances:
Total fixed 12,912 Designated by board for 25,000
Special Outreach Project
Total Assets 93,186 Purchases of new equip. 3,000
Undesignated 1,416
Total Fund balances 29,416
Total Liabilities and Fund
Balances 93,186

Income Statement
1975
Revenue from patient fees 345,450
Other revenue 5,000
Total Revenue 350,450

Expenses
Program services 235,000
Utilities 10,000
Laboratory 25,000
General and Administrative 92,000
Total Expenses 362,000

Surplus (Deficit) (11,550)

Exhibit 2 Costs and Patient Visits1 for 1975, By Department

Expenses
Number
Patient
Department Visits Salaries2 Others3 Total
Pediatrics 5,000 $20,000 $8,000 $28,000
Family Planning 10,000 5,000 15,000 20,000
Adult Medicine 2,100 30,000 16,000 46,000
Nursing 4,000 27,000 6,000 33,000
Mental Health 1,400 15,000 8,000 23,000
Social Services 1,500 32,000 8,000 40,000
Community Health 2,500 5,000 10,000 15,000
Dental 6,400 20,000 10,000 30,000
Sub-Total 32,900 154,000 81,000 235,000
Administration 38,000 2,000 40,000
Rent 36,000 36,000
Utilities 10,000 10,000
Laboratory Work 16,000 9,000 25,000
Cleaning 6,000 6,000 Projected
Record Keeping 7,000 3,000 10,000 (1976)
Total $215,000 $147,000 $362,000 398200
Number of Patient Visits 32,900 36190
Average Cost per Visit $11.00 11.00304

1
Patient visits rounded to nearest 100; Expenses rounded to nearest 1,000
2
Includes fringe benefits
3
Materials, supplies, contracted services, depreciation and other non-personnel expenses
Exhibit 3 Floor Space and Laboratory Usage1 by Department

Department Floor Space2 Laboratory Usage3

Pediatrics 1,000 1,000
Family Planning 1,300 200
Adult Medicine 1,800 2,400
Nursing 300 100
Mental Health 1,000 ---
Social Service 500 ---
Community Health 1,100 100
Dental 1,000 200
Administration 500 ---
Record Keeping 300 ---
Laboratory 1,200 ---
Total 10,000 4,000

1
Rounded to nearest 100
2
In Square Feet
3
In hours/year
 Based on floor space used
Department Floor Space2 Administration rent cleaning utilities sub total sub total
Pediatrics 1,000 4,000 3,600 600 1,000 9,200 11500.00
Family Planning 1,300 5,200 4,680 780 1,300 11,960 14950.00
Adult Medicine 1,800 7,200 6,480 1,080 1,800 16,560 20700.00
Nursing 300 1,200 1,080 180 300 2,760 3450.00
Mental Health 1,000 4,000 3,600 600 1,000 9,200 11500.00
Social Service 500 2,000 1,800 300 500 4,600 5750.00
Community Health 1,100 4,400 3,960 660 1,100 10,120 12650.00
Dental 1,000 4,000 3,600 600 1,000 9,200 11500.00
Administration 500 2,000 1,800 300 500 4,600 92000.00
Record Keeping 300 1,200 1,080 180 300 2,760 18,400
Laboratory 1,200 4,800 4,320 720 1,200 11,040
Total 10,000 40,000 36,000 6,000 10,000 92,000

1
Rounded to nearest 100
2
In Square Feet
 Laboratory used Record keeping
Laboratory Number total indirect total direct total
cost sub total cost costs expenses
Usage3 Patient Visits costs
1,000 6250 17750.00 5,000 1519.757 19269.76 28000 47269.76
200 1250 16200.00 10,000 3039.514 19239.51 20,000 39239.51
2,400 15000 35700.00 2,100 638.2979 36338.30 46,000 82338.30
100 625 4075.00 4,000 1215.805 5290.81 33,000 38290.81
0 0 11500.00 1,400 425.5319 11925.53 23,000 34925.53
0 0 5750.00 1,500 455.9271 6205.93 40,000 46205.93
100 625 13275.00 2,500 759.8784 14034.88 15,000 29034.88
200 1250 12750.00 6,400 1945.289 14695.29 30,000 44695.29
4,000 25000 117000.00 32,900 10000 127000.00 235000 362000.00

disbursed by federal bodies 74165.05

cost per
visit
9.45
3.92
39.21
9.57
24.95
30.80
11.61
6.98