As the Manager of the Bronxville location of the Metropolitan Clinic, you have been assigned to complete the 2015 operating expense budget. This clinic provides primary care to patients of all ages. It has contracts in place with all of the major payers as well as all of the Medicaid Managed Care providers currently licensed in NY State.

In preparing your budget for next year you have been given several assumptions, as follows:

• Salaries and benefits will increase in 2015 by 4.2% with no adjustment for volume changes.
• Budgeted amounts for rent and physician services are fixed by contract and in 2015 will equal 2014 levels.
• In 2015 Drugs are expected to increase by 8.9%
• All other supply items are expected to increase by 5% in 2015.
• No more money is available in 2014 to spend on office equipment, but an additional $5,000 in medical equipment will be spent in the remainder of 2014. The medical and office equipment budgets for 2015 will equal the 2014 projected actual.

The data you have been provided for the current year, 2014, is actual expense thru August.

Metropolitan Clinic 2015 Operating Budget Bronxville 8 Month Actual Salaries Federal and NY Tax Benefits $400,000.00 $64,000.00 $56,000.00 Sub-Total Salaries and Benefits $520,000.00 Rent Electric Natural Gas Patient Supplies Drugs Sutures and Casts Pt. Medical Equip. Pt. Food Physician Services Miscellaneous $65,000.00 $6,000.00 $3,900.00 $10,000.00 $12,500.00 $5,003.00 $675.00 $2,596.00 $250,000.00 $7,623.00 Sub-Total Other Operating Items Office Equipment Medical Equipment $363,297.00 $4,567.00 $12,500.00 Sub-Total Equipment $17,067.00 TOTAL $900,364.00 Projected 2014 Budget 2015