The service entity is a Unit Trust and in the 2023 financial year there are 4 unitholders. In the 2022 financial year there were 6 unitholders. The practice is open every weekday from 8am - 6pm and 8am - 12 noon on weekends. Not all doctors work every day and there is only one doctor working on weekends on rotation. The practice is a private billing practice. Billing information: Short consultation $75 (10 minutes) Medium consultation $110 (20 minutes) $135 (30 minutes) Long consultation In 2023 financial year there were 13 GP doctors, including the practice owners. This is the same number of GPs as the 2022 financial year. Given annual leave, sick leave and study leave the practice has the equivalent of 10 GPs working on average 30 hours per week and 50 weeks per year. The "service fee" revenues are the amounts paid to the practice by the sole trader GPs (non- owners) as a fee for using the facilities. To calculate total private billing the "service fees" in the Unit Trust must be converted to billings for the practice. The current "service fee" represents 40% of total billings for the non-owner doctors. This needs to grossed up to 100% to calculate billing revenues for the contribution margin. The 60% of these service fee billings that are paid to the non-owner doctors who provide the patient medical services will be added back to the costs in the P&L to determine the contribution margin. To calculate the number of each type of consultation, short medium and long that takes place on average every hour of opening, please assume that on average one short and one medium consultation takes place each doctor hour. You can calculate how many long consultations take place on average per doctor hour using this information and the average revenue per doctor hour. The "other revenue" and "government subsidies" are fixed amounts and do not relate to the number and type of services provided and do not need to be considered when calculating the contribution margin and variances in this case study.

The service entity is a Unit Trust and in the 2023 financial year there are 4 unitholders. In the 2022 financial year there were 6 unitholders. The practice is open every weekday from 8am - 6pm and 8am - 12 noon on weekends. Not all doctors work every day and there is only one doctor working on weekends on rotation. The practice is a private billing practice. Billing information: Short consultation $75 (10 minutes) Medium consultation $110 (20 minutes) $135 (30 minutes) Long consultation In 2023 financial year there were 13 GP doctors, including the practice owners. This is the same number of GPs as the 2022 financial year. Given annual leave, sick leave and study leave the practice has the equivalent of 10 GPs working on average 30 hours per week and 50 weeks per year. The "service fee" revenues are the amounts paid to the practice by the sole trader GPs (non- owners) as a fee for using the facilities. To calculate total private billing the "service fees" in the Unit Trust must be converted to billings for the practice. The current "service fee" represents 40% of total billings for the non-owner doctors. This needs to grossed up to 100% to calculate billing revenues for the contribution margin. The 60% of these service fee billings that are paid to the non-owner doctors who provide the patient medical services will be added back to the costs in the P&L to determine the contribution margin. To calculate the number of each type of consultation, short medium and long that takes place on average every hour of opening, please assume that on average one short and one medium consultation takes place each doctor hour. You can calculate how many long consultations take place on average per doctor hour using this information and the average revenue per doctor hour. The "other revenue" and "government subsidies" are fixed amounts and do not relate to the number and type of services provided and do not need to be considered when calculating the contribution margin and variances in this case study.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How many short, medium and long consultations take place? And how many hours are designated to each and additionally how much revenue does each bring in?