Budgeting and Forecasting
Establish a budget for a Nursing Unit:
Major Steps:
- Forecast FY 2020
- Identify volume driven (or variable) expense categories
- Set budget based on assumptions given (both inflation and volume)
	FY 2019	FY 2020	FY 2020		FY 2021 Budget
		9 months	Annualized
			or Forecast
Admissions	1,000	700
Charges	30,000,000	22,500,000
Deductions	(15,000,000)	(11,700,000)
Net Patient Revenue	15,000,000	10,800,000
Salaries	7,500,000	5,793,750
Benefits	1,350,000	1,042,875
Fees	250,000	193,125
Supplies	500,000	386,250
Repairs	25,000	19,313
Rent	200,000	154,500
Depreciation	250,000	193,125
Total Expenses	10,075,000	7,782,938
Income	4,925,000	3,017,063
Charge Per Admission	30,000	32,143			-
Supply Per Unit					$ -
Budget Assumptions:
1. Volume growth of 3%
2. 5% rate increase for charges
3. Deductions will be 53% of charges
Other Assumptions:
4. Staffing wil be based on the the following:
- 12 Hour Staffing Shift Model

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