- 47 -
system, food service, environmental service, utilities, and
insurance. The adjustments for food service and environmental
expenses were based on formulas provided by the food service
contractor and the environmental service contractor. The
adjustment for utilities was based on a square-footage method and
the adjustment for insurance was based on a ratio- and square-
footage methodology.
The committee ultimately concluded that the allocation
percentages were 40.3 percent and 41.6 percent for the years 1997
and 1998, respectively. The resident council reported to AFVW
residents a summary of the ad hoc committee’s findings. The
resident council explained how the allocation percentage was to
be applied, provided the same census figures used in the Health
Facility Information report, and stated what the medical
deduction was per resident.
Mr. Baker testified that the calculations in the
supplemental report he prepared were similar to the ad hoc
committee’s calculations. He testified that his calculations
assumed that the fee charged for a medical service approximated
the cost of Village West’s providing that service. Mr. Baker did
not explain in detail the adjustments contained in his
supplemental report, and we are unable to satisfactorily connect
his figures to the financial information contained in the record.
As a result, we find the supplemental report to not be helpful,
Page: Previous 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 NextLast modified: May 25, 2011