Based on the provided information below, fill in the correct information in each blank yellow highlighted cell for the Detail Expense budget for 5 years
Expenses Year 2 Year 3 Year 4 Year 5 % Increase % Increase % Increase Supervisor Technicians/Technologists Clerical Total Salaries Employee Benefits # of Staff/FTES Hourly Rate Hours per FTE 2.00 $ 42.00 21.00 $ 9.00 $ 32.00 3.56 $ 3.00 $ 22.00 7.33 $ $ 30% $ Year 1 Total Cost 174,720 599,040 137,280 911,040 273,312 Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 % Increase Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 Expenses $ 174,720 $ 599,040 137,280 $ 911,040 $ 273,312 Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 is per month per month per month per month per unit/imaging $ $ $ $ $ 8,000 10,000 20,000 4,000 25 16,980 $ $ $ $ $ 96,000 120,000 240,000 48,000 424,500 $ $ $ $ $ 96,000 120,000 240,000 48,000 424,500 $ $ $ $ $ Supplies Utilities Rent Other Department Expenses Direct Overhead Expenses Year Volume/Units Total Department Expenses Allocation - Corporate Office Overhead Expenses Depreciation Expense Total Expense 96,000 120,000 240,000 48,000 424,500 Units Units 16,980 $ 96,000 $ 120,000 $ 240,000 $ 48,000 $ 424,500 Units 16,980 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 $ 96,000 $ 120,000 $ 240,000 $ 48,000 $ 424,500 Units 16,980 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 16,980 20% $ $ $ 2,112,852 422,570 780,000 3,315,422 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 Based on the prior experience and the community needs, they estimate the following volume of diagnostic exams by Financial Class/Payor in the first year of operation. CT Financial Class/Payor Medicare & Medicare Managed Care Medicaid & Medicaid Managed Care Managed Care/Commercial Worker's Compensation Self-Pay Total X-ray 2,300 600 4,430 40 70 7,440 1,240 240 1,770 30 30 3,310 MRI 1,390 550 3,290 130 30 5,390 Total 4,930 1,390 9,490 200 130 16,140 Based on the current charges at their other diagnostic centers, gross charges for the new services will be as follows: X-ray $250.00 Ct Scan $650.00 MRI $1,050.00 Based on their current contracts with the different payors, they expect the net revenue per imaging will be as follows: Financial Class/Payor Medicare & Medicare Managed Care Medicaid & Medicaid Managed Care Managed Care & Commercial Worker's Compensation Self-Pay S $ $ $ X-ray 58.00 $ 54.00 108.00 $ 81.00 $ 49.00 CT 166.00 S 148.00 $ 315.00 $ 238.00 $ 148.00 $ MRI 265.00 243.00 450.00 360.00 216.00 $ $ S Operating expenses are estimated as follows: Staffing: 2 Full Time Supervisors at $42.00 an hour, 9 Full Time Technicians/Technologists at $32.00 an hour, 3 Clerical staff at $22.00 an hour (1 FTE = 2,080 hours per year). Current benefits (including health insurance) are running at 30% of salaries. Other operating expenses: Supplies $8,000 per month Rent $20,000 per month Utilities $10,000 per month Other department expenses $4,000 per month Direct Overhead expenses including billing, collection, coding, registration, etc. are estimated to be at $25 per exam. Corporate office overhead allocations are estimated at 20% of the total department expenses (including direct overhead but excluding depreciation). The capital expenditure for this project are estimated as follows: item Digital X-ray Machine CT Scanner MRI Machine Construction Cost for MRI Suite Other Construction/Renovation Cost Total Initial Cost Cost $ 300,000.00 $ 1,000,000.00 $ 1,800,000.00 $ 450,000.00 $ 350,000.00 $ 3,900,000.00 Imaging machines have 5 years of useful life. St Francis uses straight-line method to depreciate all imaging machines and other capital expenses related to installation and renovation of diagnostic centers. The best estimate of the machines net salvage value after the five years of use is $500,000. St. Francis Healthcare's weighted average cost of capital (WACC) is 12% and is used as their discount rate when budgeting for a new project. It is estimated that the gross charges will increase by 4% per year. It is a growing community and St Francis management expects that the volume will grow by 2% per annum. Based on their current insurance contracts, the Net Revenue is expected to increase by 3% per year. Also, expenses are expected to increase by 4% per year. Expenses Year 2 Year 3 Year 4 Year 5 % Increase % Increase % Increase Supervisor Technicians/Technologists Clerical Total Salaries Employee Benefits # of Staff/FTES Hourly Rate Hours per FTE 2.00 $ 42.00 21.00 $ 9.00 $ 32.00 3.56 $ 3.00 $ 22.00 7.33 $ $ 30% $ Year 1 Total Cost 174,720 599,040 137,280 911,040 273,312 Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 % Increase Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 Expenses $ 174,720 $ 599,040 137,280 $ 911,040 $ 273,312 Expenses $ 174,720 $ 599,040 $ 137,280 $ 911,040 $ 273,312 is per month per month per month per month per unit/imaging $ $ $ $ $ 8,000 10,000 20,000 4,000 25 16,980 $ $ $ $ $ 96,000 120,000 240,000 48,000 424,500 $ $ $ $ $ 96,000 120,000 240,000 48,000 424,500 $ $ $ $ $ Supplies Utilities Rent Other Department Expenses Direct Overhead Expenses Year Volume/Units Total Department Expenses Allocation - Corporate Office Overhead Expenses Depreciation Expense Total Expense 96,000 120,000 240,000 48,000 424,500 Units Units 16,980 $ 96,000 $ 120,000 $ 240,000 $ 48,000 $ 424,500 Units 16,980 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 $ 96,000 $ 120,000 $ 240,000 $ 48,000 $ 424,500 Units 16,980 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 16,980 20% $ $ $ 2,112,852 422,570 780,000 3,315,422 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 $ 2,112,852 $ 422,570 $ 780,000 $ 3,315,422 Based on the prior experience and the community needs, they estimate the following volume of diagnostic exams by Financial Class/Payor in the first year of operation. CT Financial Class/Payor Medicare & Medicare Managed Care Medicaid & Medicaid Managed Care Managed Care/Commercial Worker's Compensation Self-Pay Total X-ray 2,300 600 4,430 40 70 7,440 1,240 240 1,770 30 30 3,310 MRI 1,390 550 3,290 130 30 5,390 Total 4,930 1,390 9,490 200 130 16,140 Based on the current charges at their other diagnostic centers, gross charges for the new services will be as follows: X-ray $250.00 Ct Scan $650.00 MRI $1,050.00 Based on their current contracts with the different payors, they expect the net revenue per imaging will be as follows: Financial Class/Payor Medicare & Medicare Managed Care Medicaid & Medicaid Managed Care Managed Care & Commercial Worker's Compensation Self-Pay S $ $ $ X-ray 58.00 $ 54.00 108.00 $ 81.00 $ 49.00 CT 166.00 S 148.00 $ 315.00 $ 238.00 $ 148.00 $ MRI 265.00 243.00 450.00 360.00 216.00 $ $ S Operating expenses are estimated as follows: Staffing: 2 Full Time Supervisors at $42.00 an hour, 9 Full Time Technicians/Technologists at $32.00 an hour, 3 Clerical staff at $22.00 an hour (1 FTE = 2,080 hours per year). Current benefits (including health insurance) are running at 30% of salaries. Other operating expenses: Supplies $8,000 per month Rent $20,000 per month Utilities $10,000 per month Other department expenses $4,000 per month Direct Overhead expenses including billing, collection, coding, registration, etc. are estimated to be at $25 per exam. Corporate office overhead allocations are estimated at 20% of the total department expenses (including direct overhead but excluding depreciation). The capital expenditure for this project are estimated as follows: item Digital X-ray Machine CT Scanner MRI Machine Construction Cost for MRI Suite Other Construction/Renovation Cost Total Initial Cost Cost $ 300,000.00 $ 1,000,000.00 $ 1,800,000.00 $ 450,000.00 $ 350,000.00 $ 3,900,000.00 Imaging machines have 5 years of useful life. St Francis uses straight-line method to depreciate all imaging machines and other capital expenses related to installation and renovation of diagnostic centers. The best estimate of the machines net salvage value after the five years of use is $500,000. St. Francis Healthcare's weighted average cost of capital (WACC) is 12% and is used as their discount rate when budgeting for a new project. It is estimated that the gross charges will increase by 4% per year. It is a growing community and St Francis management expects that the volume will grow by 2% per annum. Based on their current insurance contracts, the Net Revenue is expected to increase by 3% per year. Also, expenses are expected to increase by 4% per year
