Build this Budget for River City Rheumatology Associates conventional budget.

The following estimations are used to develop the conventional budget:

a. 90,000 FFS visits that generate average net revenue of $50 per visit

b. 20,000 capitated members, contracted to pay $6 per member per month (PMPM)

c. Capitated members are expected to incur 3 annual visits per member

d. Variable Expense for FFS visits is budgeted at 40% of FFS revenues

e. Variable Expense for Capitated visits is budgeted at $20 per visit

f. Plant, overhead and equipment expense is $500,000 per year

g. There are fifteen (15) general partners (MD's) in RCMA

1. _{What is RCMA's Total Annual Budgeted Revenue}

_2. Following are RCRA's actual annual results:

FFS patients actually generated 80,000 visits. Actual FFS revenue averaged $48 per visit (no change to capitated revenue) RCRA maintained their variable expense for capitated patients at $18 per visit

Provide RCMAs actual total variable expense?

3. RCMA is a 15 physician general partnership, and all partners get an equal share of annual profits. Based on the actual profits of the practice, what is the actual income distribution per physician?

4. What is the actual percentage of profit variance to budget?

5. Complete the conventional budget projection and provide RCMA's budgeted profit or loss?