western dialysis clinic
... is that now HD is getting 73.8% of the cost whereas before it was getting only 61%. The general overhead costs were allocated to facility costs, administration and support staff, communication systems and utilities. In Phase II the nursing costs were also allocated to the two treatments on basis of cost pools and drivers associated with those pools. The cost pools were registered nurses, licensed practical nurses, nursing administration and dialysis machine operators. After Phase II, HD was again profitable however; it was generating an extremely low profit, almost breaking even. The fact that HD again became profitable can be attributed to the extra nursing costs assigned to those treatments during Phase I. About 13%, more nursing costs were assigned to HD. Under the new information produced, HD generates $0.27 for each treatment and PD generates $10.72 per treatment. Thus, the PD treatments are still much more profitable than HD treatments. By creating several projections in the first case we doubled the number of patients and in the second we increased the number of patients by 25%. We concluded that in the HD method the clinic ...