Health Care Finance

CHAPTER 8: FINANCIAL PLANNING & BUDGETING
Homework 3.5, Chapter 8
Chelsea Clinic projected the following budget information for 2018:
Total FFS Visits Volume	80,000		visits
Payer Mix:
Blue Cross	55%
Highmark	45%
Reimbursement Rates:
Blue Cross	$25		per visit
Highmark	$30		per visit
Variable Costs
Resource Inputs:
Labor	0.5		hours per visit
Supplies	1.2		units per visit
Resource Input Prices:
Labor	$25.00		per hour
Supplies	$1.50		per unit
Fixed Costs	$750,000

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 2018, including projections for volume, revenues, costs, and a P&L statement