HCM 5575-Financial Management of Health Organizations II Homework #4 Spring 2018 Name A hospital has opened an urgent care center to siphon off some of the more common reasons for emergency room visits that do not require emergent care. The budget report, BudgetCh06, Problem 6.1 tab, shows the urgent care centers expenses for 2016 and the actual and budgeted expenses for the first seven months of 2017 The CEO has requested all department heads submit their 2018 operating budget by Wednesday, March 1, 2017. The 2018 fiscal year begins January 1, 2018. The 2018 budget should be based on actual expenses incurred during the first seven months of 2017 Salary and fringe benefit (object codes 4000-4199) increases for all personnel should be estimated at 3% except for health insurance (4120) which is expected to increase by 10%. Input price increases for supplies and other costs (4200-4960) should be increased by 2% except for medications, 6%, and profession insurance, 8%. All increases are effective January 1, 2018 Patients per hour 9.0 8.9 9.0 9.0 Budget 2018 Object Code Description 4010 Physician salaries 4020 Nursing staff salaries 4030 Management & clerical salaries 4110 FICA 4120 Health Insurance Actual 2017 Budget 2017 2016 $960,000 1,380,000 780,000 238,680 390,000 124,800 31,200 148,152 102,792 $585,306 857,157 466,971 143,397 238,760 76,763 18,323 91,687 64,287 $576,800 829,150 468,650 143,407 234,325 74,984 18,746 89,015 61,761 4130 Retirement 4140 Unemployment 4211 Medications 4212 Medical instruments