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The following chart prepared by the ad hoc committee
represents its calculations for 1997:
Operating Expenses Amount
Total expenses $16,069,104
Interest expense (4,797,339)
Depreciation and amortization (2,161,331)
Issue cost (98,395)
Noncontract patient expense (1,291,543)
Total operating expenses 7,720,496
Medical Expenses Amount
SNF operating expenses $3,044,041
ALU and SCU operating expenses 929,275
Emergency pull-cord system 87,374
Food service adjustment 482,769
Environmental service adjustment 112,617
Utilities adjustment 81,146
Insurance adjustment 18,234
SNF noncontract patient fees (1,207,747)
SNF depreciation and amortization (211,343)
ALU noncontract patient fees (80,156)
SCU noncontract patient fees (3,640)
ALU and SCU depreciation and amortization (140,895)
Allocable medical expenses 3,111,675
Dividing medical expenses by total operating expenses, the
committee calculated that the allocation percentage for 1997 was
40.3 percent.10
103,111,675 � 7,720,496 = .403 or 40.3 percent.
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