A hospital has opened an urgent care center to siphon off some of the more common reasons for emergency room visits that do not require emergent care. The budget report, BudgetCh06, Problem 6.1 tab, shows the urgent care centers expenses for 2016 and the actual and budgeted expenses for the first seven months of 2017. The CEO has requested all department heads submit their 2018 operating budget by Monday, March 19, 2018. The 2018 fiscal year begins January 1, 2018. The 2018 budget should be based on actual expenses incurred during the first seven months of 2017.

Salary and fringe benefit (object codes 4000-4199) increases for all personnel should be estimated at 4.0% except for health insurance (4120) which is expected to increase by 8.0%. Input price increases for supplies and other costs (4200-4960) should be increased by 3.0% except for medications, 5.0% increase and profession insurance, 10.0%. All increases are effective January 1, 2018.

Patients per hour		9.0	8.9	9.0	9.0
Object			Actual	Budget	Budget
Code	Description	2016	2017	2017	2018
4010	Physician salaries	$960,000	$585,306	$576,800	________
4020	Nursing staff salaries	1,380,000	857,157	829,150	________
4030	Management & clerical salaries	780,000	466,971	468,650	________
4110	FICA	238,680	143,397	143,407	________
4120	Health Insurance	390,000	238,760	234,325	________
4130	Retirement	124,800	76,763	74,984	________
4140	Unemployment	31,200	18,323	18,746	________
4211	Medications	148,152	91,687	89,015	________
4212	Medical instruments	102,792	64,287	61,761	________
4214	Bandages, gauze	57,468	34,140	34,529	________
4216	Latex gloves, gowns	40,416	24,476	24,283	________
4216	Sterile wipes	26,820	15,780	16,114	________
4250	Office supplies	115,200	69,388	69,216	________
4280	Cleaning supplies	39,048	23,103	23,461	________
4310	Rent	144,000	89,251	86,520	________
4350	Maintenance	13,764	11,245	8,270	________
4410	Electricity	10,788	6,684	6,482	________
4420	Gas	18,504	11,215	11,118	________
4430	Water and Sewage	6,756	4,225	4,059	________
4440	Telephone	3,228	2,004	1,939	________
4930	Housekeeping	36,000	21,694	21,630	________
4940	Travel/professional meetings/meals	7,908	4,744	4,751	________
4945	Professional Insurance	22,380	15,669	13,447	________
4950	CME	29,856	17,994	17,938	________
4960	Other expenses	57,732	35,955	34,687	________
		$4,785,492	$2,930,217	$2,875,283	________