5 discount on their expenses allocating the facility

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Unformatted text preview: suffer financially while the Outpatient Center instigated the expansion to increase capacity and thus generating additional revenues. Our recommendation is similar in most aspects compared to the original allocation but differs in regards to sharing the profits gained by the pharmaceutical department. The pharmacy generates $800,000 in revenues, and bills the dialysis center $800,000 in direct costs. Our proposal is to give the dialysis center a 37.5% discount on their expenses allocating the facility $300,000 with which would cover a substantial portion of their facility costs. The $300,000 allocated over a twenty year period will allow the dialysis center to remain...
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This document was uploaded on 02/24/2014 for the course HCM 4550 at University of Minnesota Duluth.

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