You have been asked by the hospitals chief
Instructions (See that attached file)
You have been asked by the hospital’s chief administrator to create a new six-month operations budget for the clinic. Using an Excel spreadsheet, create a new six-month budget for the clinic that includes the following revenue and expense projections:
- The clinic’s revenue is projected to grow by approximately 3% as a result of a new managed care contract.
- The cost of expenses is expected to increase to 1.5%.
- The clinic will also be adding a new roof to the facility at a projected cost of $50,000.
Then prepare a memo for the chief administrator. The memo should include a review of the previous year’s budget, an analysis of the upcoming changes (figures above), and a discussion about the impacts that these changes will have on the budget for the upcoming year.
Please see rubric below:
A – 4 – Mastery
Memo includes a complete and thorough review of the year’s budget with multiple examples or supporting details.
A – 4 – Mastery
Memo includes a comprehensive analysis of the proposed changes, incorporating the following figures: clinic revenue growth of approximately 3%, a result of the new managed care contract, expense cost increase of 1.5%, new roof for facility at $50,000
A – 4 – Mastery
Memo includes a clear and thorough discussion on the impacts that the changes will have on the budget for the upcoming year. Includes multiple examples or supporting details.
A – 4 – Mastery
Excel spreadsheet of six-month budget for the clinic with revenue and expense projections has no significant errors.
Budget
| Budget C | ||
| REVENUES | ||
| Description | Detail | Yearly Budgeted Amount |
| Clinic Revenue Lab | 325 clients per month, 3,900 total visits | 163,800.00 |
| Revenue Medications | 195 of billable labs per month, 2340 labs per year | 58,500.00 |
| Revenue Procedures | 162 meds per month, 1,950 per year | 39,000.00 |
| Revenue Less | # of billable procedures done per year | 26,000.00 |
| Contractuals | Percentage negotiated with payer | 114,920.00 |
| TOTAL CLINIC REVENUE | 402,220.00 | |
| EXPENSES | ||
| Description | Detail | Yearly Budgeted Amount |
| PAYROLL | ||
| Provider salary | Total salary | 60,000.00 |
| Receptionist salary | 13,395.00 | |
| LPN salary | 28,182.00 | |
| Total Salary & Wages: | 101,577.00 | |
| Provider FICA | Salary x 0.0765 | 4,590.00 |
| Receptionist FICA | Salary x 0.0765 | 1,024.68 |
| LPN FICA | Salary x 0.0765 | 2,155.92 |
| Total FICA | 7,770.60 | |
| Unemployment | ||
| Health Insurance | 10,222.08 | |
| Life Insurance | 2,216.00 | |
| Long Term Disability | 666.00 | |
| 401K Employer Contribution | ||
| Total Additional Benefits: | 13,104.08 | |
| TOTAL PAYROLL: | 122,451.68 | |
| OPERATING EXPENSES | ||
| Supplies Food | 100 | |
| Misc. Supplies | 1,000.00 | |
| Medications | 5,000.00 | |
| Medical Supplies | 4,500.00 | |
| Office Supplies | 500.00 | |
| Printing | 500.00 | |
| Postage | UPS, Fed Ex, Postage | 500.00 |
| Professional Fees | ||
| Consulting | Accountants fees | 1,000.00 |
| Audit Fee | 1,500.00 | |
| Legal Fees | 1,500.00 | |
| Licensing Fees | Clinic | 300.00 |
| Bank Fees | 250.00 | |
| Advertising | 5,000.00 | |
| Insurance | ||
| Worker's Compensation | 1,575.00 | |
| Gen/Pro/Med Mal | liability, professional liability, employment, practice liability, property insturance, etc. | 15,000.00 |
| Umbrella Ins. | 830.00 | |
| D&O Ins. | 1,000.00 | |
| Professional Development Meetings | Continuing education for provider and staff | 1,000.00 |
| Cont. Memberships etc. | Exp. Rural Health Association | 300.00 |
| Travel & Entertainment | Monies for getting to conference | 1,000.00 |
| Facility | ||
| Telephone | Regular Service | 1,800.00 |
| Internet Access | 300.00 | |
| Utilities | Water, Electric, Garbage | 5,000.00 |
| Small Equipment & Tools | 300.00 | |
| Equipment Rental | 1,200.00 | |
| Capital Equipment | 10,000.00 | |
| Rent or mortgage | 7,200.00 | |
| Maintenance | cleaning service, building & grounds upkeep | 1,600.00 |
| TOTAL OPERATING EXPENSES | 69,755.00 | |
| TOTAL EXPENSES | 192,206.68 | |
| Yearly Budgeted Amount | ||
| NET INCOME (Loss) | [Revenue – Expenses] | 210,013.32 |
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
