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Posted on Jul 23, 2024

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

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 2020 Budget 2021 Budget 2019 ANNUAL 2019 2019 ACTUAL BUDGET VARIANCE $ 1658.200 $ 1,670,000 $ S 1.658,200 S 1.670,000 S (11.300) (11.300) REVENUES 52100 IDX Cash Collection Total Net Patient Revenues Other Revenue 55310 A Miscellaneous Income Total Contracts and Other $ $ 60,000 $ 60,000 S 63,317 S 61337 0.337) (3,337) $ 1,718,200 $ 1917 (15,137) 5 . Total Revenues EXPENSES 60010 Salaries And Wages 60020 Overtime 60050 Physician Salaries Total Faculty & Support Staff Salary $ 550,000 $ 447,000 $100,000 $ 396 196 $ 300,000 $ 40.000 $ 1.390,396 5 1,287,000 5 103.396 63000 63030 610NO 63100 64000 65000 65050 65505 65510 68517 65525 Supplies - Laborwory Supplies - Medical Supplies - Surgical Rx All Other Supplies - Hotel Services Supplies - Office Dietary Electricity Telephone Equipment Service Contracts Freight Software Maint and Support Maintenance And Repairs Purchases Services - Linen Dues Postage Printing And Duplication Total Supplies and Expenses 6,2345 8,000 S 5.400 $ 10.500 $ 780 S 990 S 574 $ 8,500 $ 250 $ 619 5 3995 5,400 $ 200 S 1.170S 1.608 $ 500 $ 52124 $ 84005 (2.166) 8,350 S (350) 700 S (1.900) 10,500 $ 652 $ 652S 128 795 $ 192 475 $ 99 8.500 5 1.164 5 6475 (25) 4255 (26) 5,028 $ 372 1715 29 693 $ 477 1.00 $ 0 576 $ (76) 55,286 S (3.162) $ $ $ $ $ S $ $ 67040 Affil-Conna Insurance Total Malpractice $ $ 45,000 45.000 45,000 45.000 68710 Affil-Billing & Collection OH Total Overhead and Billing $ 5 72.5 72,817 5 80.628 30,628 5 $ 7811 7,811 Total Expenses $ 1.560.336 S 1.467,914 S 108.044 $ 157,864 S 265,424 S (123,182) Net Revenues/Cher (Expenditures) 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 2020 Budget 2021 Budget 2019 ANNUAL 2019 2019 ACTUAL BUDGET VARIANCE $ 1658.200 $ 1,670,000 $ S 1.658,200 S 1.670,000 S (11.300) (11.300) REVENUES 52100 IDX Cash Collection Total Net Patient Revenues Other Revenue 55310 A Miscellaneous Income Total Contracts and Other $ $ 60,000 $ 60,000 S 63,317 S 61337 0.337) (3,337) $ 1,718,200 $ 1917 (15,137) 5 . Total Revenues EXPENSES 60010 Salaries And Wages 60020 Overtime 60050 Physician Salaries Total Faculty & Support Staff Salary $ 550,000 $ 447,000 $100,000 $ 396 196 $ 300,000 $ 40.000 $ 1.390,396 5 1,287,000 5 103.396 63000 63030 610NO 63100 64000 65000 65050 65505 65510 68517 65525 Supplies - Laborwory Supplies - Medical Supplies - Surgical Rx All Other Supplies - Hotel Services Supplies - Office Dietary Electricity Telephone Equipment Service Contracts Freight Software Maint and Support Maintenance And Repairs Purchases Services - Linen Dues Postage Printing And Duplication Total Supplies and Expenses 6,2345 8,000 S 5.400 $ 10.500 $ 780 S 990 S 574 $ 8,500 $ 250 $ 619 5 3995 5,400 $ 200 S 1.170S 1.608 $ 500 $ 52124 $ 84005 (2.166) 8,350 S (350) 700 S (1.900) 10,500 $ 652 $ 652S 128 795 $ 192 475 $ 99 8.500 5 1.164 5 6475 (25) 4255 (26) 5,028 $ 372 1715 29 693 $ 477 1.00 $ 0 576 $ (76) 55,286 S (3.162) $ $ $ $ $ S $ $ 67040 Affil-Conna Insurance Total Malpractice $ $ 45,000 45.000 45,000 45.000 68710 Affil-Billing & Collection OH Total Overhead and Billing $ 5 72.5 72,817 5 80.628 30,628 5 $ 7811 7,811 Total Expenses $ 1.560.336 S 1.467,914 S 108.044 $ 157,864 S 265,424 S (123,182) Net Revenues/Cher (Expenditures)