6. You have just been promoted to the Administrative Manager for Post Internal Medicine. Your predecessor left on a bad note and did not complete the budgets in time. Submission is due in a week and it's up to you to complete the 2020 final budget and the 2021 draft budget. You are given a copy of 2019 actual, budget and variance. The V.P. states the service line budgets off of Actuals for the prior year. Based on the information below create the 2020 and 2021 budget. 2019 The office currently has 4 physicians and 5 clerical staff. Assume for each year that: All staff are paid the same amount. All physicians are paid the same amount Each physician generates the same amount of revenue each year. Base estimates off of the actual 2019 numbers 2020 At the tail end of 2019 the department recruited 2 new physicians. They will start Jan 1 2020. Luckily they thought ahead and have already enrolled them in insurance plans so they can bill day one. They also increased the clerical FTE count by 1 to support the new providers. Update your budget for 2020. Add one more staff. 2019 clerical staff receive 3% COLA . New person in 2020 is hired on at the 2019 rate +COLA so all staff are paid the same amount in 2020 Patient volume increases 20 % : update your supply expense to reflect this. Affil- Miscellaneous Income stays the same Affil-Billing & Collection OH increases 2 % each year 2021 If all goes to plan, you will have two physicians finishing their residency who will be hired into the office Jan 1 2021. They are expected to increase volume by 20 %. Update salaries, malpractice and associated revenue. One of these physicians has a contract with an outside company to provide consult services. This is anticipated to bring in additional revenue of $20k for 2021. Due to space constraints with the new physicians you will be outsourcing the Lab and all associated fees. You also have to hire on 1 additional clerical staff member @ the same salary as the existing staff. Money is a bit tight this year so there will be no COLA. Update your budget for 2021 POST INTERNAL MEDICINE MONTHLY RECAP OF REVENUES & EXPENDITURES 2019 ANNUAL REVENUE AND EXPENSE BUDGET 2021 Budget 2020 Budget 2019 ANNUAL 2019 2019 BUDGET VARIANCE ACTUAL REVENUES 52100 S 1,658.200 $ 1,670,000 S (11,800) S 1,658,200 S 1,670,000 S (11,800) IDX Cash Collection Tetal Net Patient Revenues Ocher Revenue 63,337 S 63,337 S (3337 37) Affil- Miscellancous Income Total Contracts and Other 60,000 S 55330 S 60,000 S S 1718.200S 1733.337 S (15.137) Total Revenurs EXPENSES 60010 447,000 103,000 Salaries And Wages 550,000 S 396 60020 Overtime 396 S S 840,000$ 840,000 S S 1,390,396 S 1,287,000 S 103,396 Physician Salaries Total Faculty & Suppert Staff Salary 60050 (2166) 350) (1,900) Supplies- Laboratory Supplics- Medical Supplies-Surgical Rx-All Other 8,400 S 63000 6.234 S 8.350 S 8,000 S 63030 5,400 S 7300 63080 63300 10,500 S 10.500 Supplies- Hotel Services Supplies- Office Dietary Electricity 780 S 652 128 64000 798 S 64020 990 $ 192 64510 574 475 S 8,500 S 65000 8,500 S Telephone Equipment Service Contracts Freight Software Maint and Support Maintenance And Repairs S 1,250 $ 85 65050 1,164 65505 S 619 $ 399 S (28) 647 S 65510 S 425 $ (26) 5,028 $ 65517 5.400 S 372 65525 200 S 171 S 29 65565 Purchases Services Linen 1,170 S S 693 S 477 66000 Dues 1,608 S 1,608 S 0 Postage Printing And Duplication Total Supplies and Expenses 66040 500 576 $ (76) 52,124 S 55,286 S (3,162) 67040 Affil- Contra Insurance 45,000 45,000 $ Tetal Malpractice 45,000 45,000 S Affil-Billing & Collecticn OH 68710 72.817 S 80,628 S 7,811 Total Overhead and Billing 72,817 S 80,628 S 7,811 Tatal Espeases S 1,560,336 S 1,467914 S 108,044 Net Revenues/Over (Expenditures) 157,864 S 265,424 S (123,182) 6. You have just been promoted to the Administrative Manager for Post Internal Medicine. Your predecessor left on a bad note and did not complete the budgets in time. Submission is due in a week and it's up to you to complete the 2020 final budget and the 2021 draft budget. You are given a copy of 2019 actual, budget and variance. The V.P. states the service line budgets off of Actuals for the prior year. Based on the information below create the 2020 and 2021 budget. 2019 The office currently has 4 physicians and 5 clerical staff. Assume for each year that: All staff are paid the same amount. All physicians are paid the same amount Each physician generates the same amount of revenue each year. Base estimates off of the actual 2019 numbers 2020 At the tail end of 2019 the department recruited 2 new physicians. They will start Jan 1 2020. Luckily they thought ahead and have already enrolled them in insurance plans so they can bill day one. They also increased the clerical FTE count by 1 to support the new providers. Update your budget for 2020. Add one more staff. 2019 clerical staff receive 3% COLA . New person in 2020 is hired on at the 2019 rate +COLA so all staff are paid the same amount in 2020 Patient volume increases 20 % : update your supply expense to reflect this. Affil- Miscellaneous Income stays the same Affil-Billing & Collection OH increases 2 % each year 2021 If all goes to plan, you will have two physicians finishing their residency who will be hired into the office Jan 1 2021. They are expected to increase volume by 20 %. Update salaries, malpractice and associated revenue. One of these physicians has a contract with an outside company to provide consult services. This is anticipated to bring in additional revenue of $20k for 2021. Due to space constraints with the new physicians you will be outsourcing the Lab and all associated fees. You also have to hire on 1 additional clerical staff member @ the same salary as the existing staff. Money is a bit tight this year so there will be no COLA. Update your budget for 2021 POST INTERNAL MEDICINE MONTHLY RECAP OF REVENUES & EXPENDITURES 2019 ANNUAL REVENUE AND EXPENSE BUDGET 2021 Budget 2020 Budget 2019 ANNUAL 2019 2019 BUDGET VARIANCE ACTUAL REVENUES 52100 S 1,658.200 $ 1,670,000 S (11,800) S 1,658,200 S 1,670,000 S (11,800) IDX Cash Collection Tetal Net Patient Revenues Ocher Revenue 63,337 S 63,337 S (3337 37) Affil- Miscellancous Income Total Contracts and Other 60,000 S 55330 S 60,000 S S 1718.200S 1733.337 S (15.137) Total Revenurs EXPENSES 60010 447,000 103,000 Salaries And Wages 550,000 S 396 60020 Overtime 396 S S 840,000$ 840,000 S S 1,390,396 S 1,287,000 S 103,396 Physician Salaries Total Faculty & Suppert Staff Salary 60050 (2166) 350) (1,900) Supplies- Laboratory Supplics- Medical Supplies-Surgical Rx-All Other 8,400 S 63000 6.234 S 8.350 S 8,000 S 63030 5,400 S 7300 63080 63300 10,500 S 10.500 Supplies- Hotel Services Supplies- Office Dietary Electricity 780 S 652 128 64000 798 S 64020 990 $ 192 64510 574 475 S 8,500 S 65000 8,500 S Telephone Equipment Service Contracts Freight Software Maint and Support Maintenance And Repairs S 1,250 $ 85 65050 1,164 65505 S 619 $ 399 S (28) 647 S 65510 S 425 $ (26) 5,028 $ 65517 5.400 S 372 65525 200 S 171 S 29 65565 Purchases Services Linen 1,170 S S 693 S 477 66000 Dues 1,608 S 1,608 S 0 Postage Printing And Duplication Total Supplies and Expenses 66040 500 576 $ (76) 52,124 S 55,286 S (3,162) 67040 Affil- Contra Insurance 45,000 45,000 $ Tetal Malpractice 45,000 45,000 S Affil-Billing & Collecticn OH 68710 72.817 S 80,628 S 7,811 Total Overhead and Billing 72,817 S 80,628 S 7,811 Tatal Espeases S 1,560,336 S 1,467914 S 108,044 Net Revenues/Over (Expenditures) 157,864 S 265,424 S (123,182)