Question:
The report should utilise appropriate data from the Pharmaceutical Benefits Scheme (PBS) as well as other relevant health and pharmaceutical-related data available in the public domain. Students should reference academic literature and analysis of the PBS to construct their response to the areas above. When appropriate, data should be expressed using charts and tables to illustrate comparisons, trends or other analysis. Students should present a clear understanding of the PBS and its financial implications for the health sector and for consumers and provide recommendations on how the scheme could be made more efficient and provide positive impacts on costs and consumption.
Answer:
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Income |
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| Calculation |
Explanatory Notes |
Category |
Product/Service |
Formula |
Calculation |
Explanatory Notes |
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| $ 3,43,200.00 |
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Income |
Government allocated funds |
4x4x5x52x90 |
$ 3,74,400.00 |
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| $ 1,66,400.00 |
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Revenue from service pay |
4 x 4 x 5 x 52 x 80 |
$ 3,32,800.00 |
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| $ 1,24,800.00 |
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Medicine sales |
6 x 5 x 5 x 52 x 45 |
$ 3,51,000.00 |
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| $ 95,160.00 |
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TOTAL INCOME |
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Insert total amount here -> |
$ 10,58,200.00 |
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| $ 7,29,560.00 |
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| $ 12,480.00 |
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Break Even Calculation |
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| $ 6,240.00 |
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TOTAL INCOME |
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$ 10,58,200.00 |
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| $ 6,240.00 |
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minus TOTAL COSTS PER YEAR |
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$ 10,58,200.00 |
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| $ 7,800.00 |
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Profit / Loss ($) |
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0 |
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| $ 32,760.00 |
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| $ 26,520.00 |
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If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income. |
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| $ 10,660.00 |
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Pediatric Center |
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| Expenses |
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Income |
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| Category |
Item/Costs |
Formula for getting the original values |
ORIGINAL VALUES |
Adjusted values as per the -10% |
Category |
Product/Service |
Formula |
Calculation |
Explanatory Notes |
| Staffing |
Physicians |
3 x 55 x 8 x 5x 52 |
$ 3,43,200.00 |
$ 3,08,880.00 |
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Income |
Government allocated funds |
4x4x5x52x90 |
$ 3,74,400.00 |
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Nurses |
2x 40 x 8 x 5 x 52 |
$ 1,66,400.00 |
$ 1,49,760.00 |
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Revenue from service pay |
4 x 4 x 5 x 52 x 80 |
$ 3,32,800.00 |
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Adminstrative staff |
2 x 30 x 8 x 5 x 52 |
$ 1,24,800.00 |
$ 1,12,320.00 |
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Medicine Sales |
6 x 5 x 5 x 52 x 45 |
$ 3,51,000.00 |
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Oncosts |
total cost of staff above x 15% |
$ 95,160.00 |
$ 85,644.00 |
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TOTAL INCOME |
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Insert total amount here -> |
$ 10,58,200.00 |
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| TOTAL STAFFING |
Insert total amount here -> |
$ 7,29,560.00 |
$ 6,56,604.00 |
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| Consumables |
Baby Scales |
4x 3 x 4 x 5 (per week) x 52 |
$ 11,232.00 |
$ 10,108.80 |
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Break Even Calculation |
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Baby thermometers |
4 x 2 x 3 x 5 x 52 |
$ 5,616.00 |
$ 5,054.40 |
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TOTAL INCOME |
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$ 10,58,200.00 |
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Blood pressure monitors |
3 x 2 x 4 x 5 x 52 |
$ 5,616.00 |
$ 5,054.40 |
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minus TOTAL COSTS PER YEAR |
$ 9,48,459.60 |
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Diaper Scales |
2 x 3 x 5 x 5 x 52 |
$ 7,020.00 |
$ 6,318.00 |
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Profit / Loss |
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109740.4 |
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| TOTAL CONSUMABLES |
Insert total amount here -> |
$ 29,484.00 |
$ 26,535.60 |
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| Utilities |
Electricity |
500x52 |
$ 26,000.00 |
$ 23,400.00 |
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If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income. |
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Internet |
200x52 |
$ 10,400.00 |
$ 9,360.00 |
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Water |
300x52 |
$ 15,600.00 |
$ 14,040.00 |
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| TOTAL UTILITIES |
Insert total amount here -> |
$ 52,000.00 |
$ 46,800.00 |
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| Administration |
Security system |
300x 52 |
$ 15,600.00 |
$ 14,040.00 |
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Insurance |
400 x 52 |
$ 20,800.00 |
$ 18,720.00 |
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Repair and maintenance |
200x52 |
$ 10,400.00 |
$ 9,360.00 |
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Building Rent |
3000 x 52 |
$ 1,56,000.00 |
$ 1,40,400.00 |
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| TOTAL Administration |
Insert total amount here -> |
$ 2,02,800.00 |
$ 1,82,520.00 |
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| Depreciation |
Depreciation |
200000x 20% |
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$ - |
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| TOTAL DEPRECIATION |
Insert total amount here -> |
$ 40,000.00 |
$ 36,000.00 |
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| TOTAL COSTS PER YEAR |
Total of each of the five section totals |
$10,53,844 |
$ 9,48,459.60 |
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| To achieve the 10% profit, one should either reduce the cost of production by 10% while keeping the income constant or increase income by 10% while keeping the cost of production constant following the fact that the initial budget provides the breakeven point. For the case above, I attained the ten percent profit by reducing the cost of production by 10% while keeping the income constant. To make the work easy, I used the F function to place formular 90%*C4 at D4 where by the value in C4 represents the original cost whereas D column represents the adjusted values after the calculations. after inplacing the formular, I tabed the enter-tab to allow the resultant answer to desplay in cell D4. i then pressed-in the mouse at the bottom-right conner of the cell D4 and scrolled down to cell D25 in order to calculate the values of the remaining cells. Under the contigency plan, there is a likelyhood that the desired funding might be below the optimum level. Therefore, in such a case, two solutions are fundamental in order to meed the desired 10% profi. Firstly, the budget can be adjusted such that the income is inrease by a relevant percentage through change in the unit price of the services offered in the health center. Secondly, the bought items can be used as a security for loans to cater for the absent capital. |
