Calculating the GHA calls for the understanding departments within the hospital and the kind of expenditure they make in order to continue operation. First, the direct cost is the expenditure is made directly by the Physical therapy, occupational therapy and speech therapy, the indirect cost is the expense incurred by each department based on several factors. First, the indirect costs incurred as result of clerical salaries are calculated based on the visit volume experienced by each department, and the cost is spread in accordance with the percentage of each department to the total visit volume. Administrative salaries cost is shared based on the percentage strength of the direct cost of each department to the total cost of the total administrative expenses. For computer costs, each department will have its allocation determined based on the percentage number of the computers at their disposal.
Therefore, the indirect cost impacts differently on each department, based on the number of computers; physical therapy PT has the highest cost when it comes to computer service as it has the highest percentage of the number of computers at their service. There exist a relationship between the administrative salaries and the direct cost, this because, the department with the highest direct cost claims the biggest percentage of the administrative cost, thus hospital seem to be incurring a lot of expenses in the Physical therapy department as result of the function it does. In the same way, the clerical salary which is allocated based on the visit volume is enjoyed greatly by Physical Therapy department. Based on the available figures, the physical therapy department incurs the highest expenses, based on the fact that it has the highest visit volume, the highest number of computers at service at leads in the clerical salaries.
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