1. What was the hospital's original profit forecast (assume away any issues with depreciation, taxes, etc.)? Halfway through the fiscal year, what is the hospital's revised projection for FY11 profits?

2. Which inpatient service lines are overbudget? Which product lines are overbudget after accounting for workload increases?

3. What actions would you take at the mid-year point if you were a fee-for-service hospital? In other words, where are the problem areas on which you would focus your attention, and who might provide ideas for "best practices" based on their performance?

4. What actions would you take at the mid-year point if you were a capitated hospital? In this case, the revenue spreadsheet would be replaced with an overall budget of $50 million with which to operate (rather than being able to bill for each episode of patient care). Federal, state, county, and city hospitals normally operate under a capped budget. Additionally, many HMOs also operate under a fixed Per Member, Per Month (PMPM) capitated process.

Revenues Worksheet, Mid-Year Review

Inpatient

Inpatient Product Line

Price/RWP

Forecasted RWPs For FY11

Projected IP Revenue For FY11

Actual RWPs (FY11 YTD)

Actual IP Revenue (FY11 YTD)

CIRC

$ 6,010.65

724

$ 4,351,711

421

$ 2,530,676

DIGEST

$ 6,021.65

1,161

$ 6,988,125

636

$ 3,830,402

ENT

$ 6,001.65

130

$ 780,215

72

$ 433,948

GYN

$ 6,013.65

219

$ 1,313,983

116

$ 697,128

MENTAL HEALTH

$ 502.99

1,351

$ 679,539

736

$ 369,949

NERVOUS

$ 6,103.65

228

$ 1,391,632

112

$ 682,744

NEWBORN

$ 7,014.71

733

$ 5,141,782

433

$ 3,033,900

OB

$ 5,713.65

1,501

$ 8,576,189

868

$ 4,960,622

ORTHO

$ 6,084.18

631

$ 3,839,118

274

$ 1,664,658

OTHER

$ 6,018.14

2,152

$ 12,951,037

800

$ 4,813,961

RESP

$ 6,118.73

677

$ 4,142,380

197

$ 1,202,960

Total Inpatient Earnings

Expenses Worksheet, Mid-Year Review
Inpatient
Inpatient Product Line	Budget/RWP (FY10)	Actual RWPs (FY10)	IP Expenses (FY10)	Forecasted RWPs (FY11)	FY11 Budget (FY10+6% Inflation)	Actual RWPs (FY11 YTD)	Actual IP Expenses (FY11 YTD)
CIRC	$ 5,475.81	690	$ 3,778,309	724	$ 4,202,356	421	$ 2,472,822
DIGEST	$ 5,476.81	1,105	$ 6,051,875	1,161	$ 6,737,188	636	$ 4,356,173
ENT	$ 5,477.81	124	$ 679,248	130	$ 754,842	72	$ 462,822
GYN	$ 5,478.81	208	$ 1,139,592	219	$ 1,268,947	116	$ 777,322
MENTAL HEALTH	$ 498.78	1,287	$ 641,930	1,351	$ 714,283	736	$ 400,730
NERVOUS	$ 5,478.81	217	$ 1,188,902	228	$ 1,324,119	112	$ 675,173
NEWBORN	$ 5,478.81	698	$ 3,824,209	733	$ 4,256,926	433	$ 2,971,020
OB	$ 5,478.81	1,430	$ 7,834,698	1,501	$ 8,717,115	868	$ 5,472,892
ORTHO	$ 5,478.81	601	$ 3,292,765	631	$ 3,664,557	274	$ 1,771,063
OTHER	$ 5,478.81	2,050	$ 11,231,561	2,152	$ 12,497,823	800	$ 4,662,277
RESP	$ 5,478.81	645	$ 3,533,832	677	$ 3,931,704	197	$ 1,233,771
Total Inpatient Expenses			$ 43,196,922	9,506	$ 48,069,860	4,664	$ 25,256,062

9,506

$ 50,155,710

4,664

$ 24,220,949