1. I do not find it “fair” for the Dialysis Center to suffer in profit and hence at the idea that Linda may lose her bonus at the expense of the Outpatients Clinic. I believe here you have the perfect opportunity to distribute allocation to both the Dialysis Center and Outpatients Clinic in order to see a net profit from the additional space of the Outpatient Clinic. By taking advantage of the new Dialysis Center facility it could be a consideration to allocate funds that would suit a larger volume of patients, in order to see a profit.
2. I do not support the new allocation scheme, with the idea that, it is requiring the Dialysis Center to provide the true facility cost prior to the allocation of the total amount. In a situation where the true cost, in the end is either more or less then what the medical center planned for can cause issues with the total revenue and may effect the profit if additional cost is needed. An advantage of this, is that the medical center is not allocating more of the aggregated funds then what is needed.
3. In 20 years, when the loan has been paid off and there are no longer any actual facilities cost. The facilities allocation to the Dialysis Center would change drastically with an increase in the general overhead of the Outpatient Clinic leaving allocations for the upkeep of the Dialysis Center, along with, direct expenses.
4. Followed by the Dialysis Center’s move to a new facility, that’s two blocks away from the hospital complex, I do believe we would see a noticeable increase in the attraction of patients. With an increase in patients, the facility would have to allocate funds for accommodating a larger volume of patients by increasing the number of station, the amount of personnel that is on staff, and also purchasing additional equipment.
5. It does seem fair because the pharmacy is recording an accurate amount of revenue and cost on its P&L statement.