Question
HERE'S THE DIRECTIONS: Scenario: St. Anne Hospital, a city-based non-profit community hospital, is looking at adding a diabetes treatment center (DTC) which will provide comprehensive
HERE'S THE DIRECTIONS:
Scenario:
St. Anne Hospital, a city-based non-profit community hospital, is looking at adding a diabetes treatment center (DTC) which will provide comprehensive diabetes care and education. This is in response to a population health needs assessment which identified a high rate of diabetes in the population surrounding the hospital. The population consists of 50% Hispanics, 25% Caucasians, 12% African American, and 13% recent immigrants from Northern Africa. Over 50% of the population is living within 200% or below of the poverty level. You have been asked to develop a business plan for the DTC which will be presented to St. Annes Board of Trustees.
Assumptions for Diabetes Treatment Center
Reimbursement
The dialysis center will charge a flat per visit fee of $450. This rate will stay constant. Contractual discounts for insurance is 30% of gross patient revenue.
Yearly Staffing Costs by Clinical Lead Model
Position FTEs Salary/Year/FTE
Physicians 1 $200,000
Nurse Practitioners 2 $85,000
Nurse 2 $60,000
Dialysis Technician 1 $45,000
Assistant/Receptionist 3 $30,000
*** Benefits are assumed to be 25% of salaries and Salaries will increase 3% each year
Demand Forecasting
Year 1 4882
visits Visits will increase 5 % per year
Capital Requirements
Construction Costs per Square Foot - $777.63
Project Costs per Square Foot - $1,308.49
Square Footage - 4,175
Expenses
Operating Costs
Utilities $208,750
Repair/Maintenance $40,500
Housekeeping $20,000
Telephone Service $16,806
Depreciation $32,000
Malpractice $50,000
Miscellaneous/Other $20,000
Supplies
Medical Supply Costs $65,767
Other Non-Personnel Costs $95,351
All expenses listed to increase by 3% per year
HERE'S THE EXCEL SHEET
| Pro Forma Income Statement | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Visits | 4,882 | 5,126 | 5,382 | 5,652 | 5,934 | |
| Revenue Per Visit | $450 | $450 | $450 | $450 | $450 | |
| Gross Revenue | ||||||
| Patient Reveue | ||||||
| Gross Patient Revenue | ||||||
| Deductions from Patient Revenue | ||||||
| Contractual | ||||||
| Total Deductions from Revenue | ||||||
| Net Patient Revenue | $0 | $0 | $0 | $0 | $0 | |
| Operating Expenses | ||||||
| Salaries and Wages | ||||||
| Employee Benefits | ||||||
| Utilities | ||||||
| Repair/Maintenance | ||||||
| Housekeeping | ||||||
| Telephone Service | ||||||
| Depreciation | ||||||
| Malpractice | ||||||
| Miscellaneous/Other | ||||||
| Variable Medical Supply Costs | ||||||
| Other Non-Personnel Costs | ||||||
| Total Operating Expenses | ||||||
| Excess of Rev over Exp. From Operations | $0 | $0 | $0 | $0 | $0 | |
| Cummulative Income | $0 | $0 | $0 | $0 | $0 | |
| Net Cash from Excess Rev (excl Depreciation) | $0 | $0 | $0 | $0 | $0 | |
| Cummulative Income Net Cash | $0 | $0 | $0 | $0 | $0 | |
HEET:
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1st Edition
1570733813, 978-1570733819
