CHAPTER 8: FINANCIAL PLANNING & BUDGETING
Homework 3.4, Chapter8
Chelsea Clinic projected the following budget information for 2021:
Total FFS Visits Volume	70,000	visits
Payer Mix:
Blue Cross	60%
Highmark	40%
Reimbursement Rates:
Blue Cross	$45	per visit
Highmark	$50	per visit
Variable Costs
Resource Inputs:
Labor	0.7	total hours
Supplies	1.3	total units
Resource Input Prices:
Labor	$22.00	per hour
Supplies	$1.25	per unit
Fixed Costs	$800,000
Using Exhibit 8.3 as a guide (excluding the capitated numbers since payers in this homework problem are all FFS) construct Chelsea Clinic's operating budget for 2021, including projections for volume, revenues, costs, and a P&L statement