2. Revenue Budget for a hospital
Dr. Gayle is the administrator of Manila General Hospital. He has asked for your assistance in preparing the 2021 revenue budget that he must present at the next meeting of the Board of Trustees. You found out that the hospital obtains its revenues through four types of charges:
- Use of hospital room
- Use of operating room
- Lease Income
- Medicines
Ward a) Estimated data of the types of patients and the related room requirements for 2021 follow: Type of Patient Expected Average Stay Private Room Semi Private Room Volume Surgical 2,400 15% 75% Medical 2,100 8 10% 10 days 10% 30% 60% Basic room charges: P1.000 for the Private Room, P800 for the semi- private and P400 for the ward. b) Charges for using the operating room depend on the length of the operation and the number of persons involved in the operation. The charge is P100 per person-minute. For example if three persons are involved (a surgeon, a nurse and an maesthesiologist) and the operation takes two hours x 60 minutes= 120 minutes x P100= P12,000 per person x 3 persons involved= P36,000 is charged to the patient for using the room. This room charge includes water, electricity, depreciation of equipment, insurance of equipment, depreciation of room, use of linens, medical instruments, etc). Based on past experience, the following is a breakdown of the types of operations to be performed on surgical patients: Number of Average No of Minutes Average Number of Type of Operation Operations Per Operation Persons Required Minor 1.200 30 4 Major-abdominal 400 90 6 Major- other 800 120 8 Total 2.400 c) There are 80 clinics but only 80% of these (based on the number of medical practitioners) are up for lease under a sharing agreement of 2 practitioners per clinical room. The monthly lease is P30.000 per clinic but is estimated to increase by 10% in the last quarter. Patients pay these practitioners for professional fees separate from the hospital fees and are not entered in the hospital's record. d) Medicines used by patients are also separately charged by the drugstore based on a requisition slip (medicine, plaster, cotton, gauze, syringe This budget is prepared by the drugstore, not part of hospital budget Required: a) Prepare a schedule of budgeted revenues from room charges by type of patient and type of room. Total NO Total no Private Semi Private Grand Type of Patient of Patients of days Room Room Ward Total Surgical( days) x 2,400 (15%) (75%) (10%) Medical (days) x 2,100 (10%) (60%) (30%) Total Room Days Xxx Xxx X Room Charge P1.000 Total Revenues P P P30.720.000 b) Prepare a schedule of budgeted revenues from operating room charges by type of operation. Total Number Total number of Total Charges per Type of Operation of Operations person- minutes Type of Operation Minor 1,200 (1,200 x 30 x 4) =144,000 *P100= P14,400,000 Major-abdominal 400 Major-others 800 Grand Total 2.400 P120.800.000 XXX P XXX XXXXXXXXXX c) Prepare a budget of lease income by quarter, using the following format: No of Rooms Monthly (3 mos) Occupied Lease Rate 1rst Qtr 2nd Qur 3rd Qur 80 x .8=64 P30,000 P5,760,000 Grand Total Ward a) Estimated data of the types of patients and the related room requirements for 2021 follow: Type of Patient Expected Average Stay Private Room Semi Private Room Volume Surgical 2,400 15% 75% Medical 2,100 8 10% 10 days 10% 30% 60% Basic room charges: P1.000 for the Private Room, P800 for the semi- private and P400 for the ward. b) Charges for using the operating room depend on the length of the operation and the number of persons involved in the operation. The charge is P100 per person-minute. For example if three persons are involved (a surgeon, a nurse and an maesthesiologist) and the operation takes two hours x 60 minutes= 120 minutes x P100= P12,000 per person x 3 persons involved= P36,000 is charged to the patient for using the room. This room charge includes water, electricity, depreciation of equipment, insurance of equipment, depreciation of room, use of linens, medical instruments, etc). Based on past experience, the following is a breakdown of the types of operations to be performed on surgical patients: Number of Average No of Minutes Average Number of Type of Operation Operations Per Operation Persons Required Minor 1.200 30 4 Major-abdominal 400 90 6 Major- other 800 120 8 Total 2.400 c) There are 80 clinics but only 80% of these (based on the number of medical practitioners) are up for lease under a sharing agreement of 2 practitioners per clinical room. The monthly lease is P30.000 per clinic but is estimated to increase by 10% in the last quarter. Patients pay these practitioners for professional fees separate from the hospital fees and are not entered in the hospital's record. d) Medicines used by patients are also separately charged by the drugstore based on a requisition slip (medicine, plaster, cotton, gauze, syringe This budget is prepared by the drugstore, not part of hospital budget Required: a) Prepare a schedule of budgeted revenues from room charges by type of patient and type of room. Total NO Total no Private Semi Private Grand Type of Patient of Patients of days Room Room Ward Total Surgical( days) x 2,400 (15%) (75%) (10%) Medical (days) x 2,100 (10%) (60%) (30%) Total Room Days Xxx Xxx X Room Charge P1.000 Total Revenues P P P30.720.000 b) Prepare a schedule of budgeted revenues from operating room charges by type of operation. Total Number Total number of Total Charges per Type of Operation of Operations person- minutes Type of Operation Minor 1,200 (1,200 x 30 x 4) =144,000 *P100= P14,400,000 Major-abdominal 400 Major-others 800 Grand Total 2.400 P120.800.000 XXX P XXX XXXXXXXXXX c) Prepare a budget of lease income by quarter, using the following format: No of Rooms Monthly (3 mos) Occupied Lease Rate 1rst Qtr 2nd Qur 3rd Qur 80 x .8=64 P30,000 P5,760,000 Grand Total
