Expense Problems 1. Bayside hospital is projecting that their supplies to finish out this year at $12,000,000. If they anticipate a 4% inflation and a 2% volume growth, what would their budgeted supplies be at? 2. Dr. Smith is meeting with his accountant about this 2012 budget. Currently his rent costs him $4,000 per month. He does anticipate a 5% volume growth next year, but no need for additional space. He is in the 3rd year of a 5 year lease agreement that calls for a 2% annual escalation in his rent. Based on the information given, what would you project Dr. Smith's 2012 budget be for his rent? 3. You are the lab director for a large hospital. Currently you spend $10 per patient day for lab supplies. You anticipate that you will experience a 2% inflation for your costs next year. The hospital is projected to finish the current year with 10,000 discharges and a length of stay of 5 days. What is your current projected cost? 4. You anticipate that you will experience a 2% inflation for your daily costs next year. You also anticipate a 5% discharge growth and a reduction in ALOS from 5.0 to 4.5 days. Based on the new information, what would you project your next year budget to be? (Hint: Calculate your new total patient days and new per day cost first). 5. You are given the following information: A. Current 9 month supply cost is $8,000. B. Volume Growth next year is 4% C. Expected supplyinflation next year is 5% What is your current year project and next year supply budget