How do I start up a department budget plan for one fiscal period using basic accounting principles and identify the significant budget variances. The budget consists of all general operating expenses, capital expenditures, and personnel expenses anticipated for the fiscal period. Supporting documents including base statistics for the hospital and a document covering the specific needs of the HIM department. Please what is a way to begin and have a supporting plan

STATISTICS FOR BUDGETING PURPOSES Introduction There are two classifications of hospital statistics in the budget process: 0 Base statistics 0 Department statistics Base statistics are developed by administration and project patient volume in the budget year. Department statistics are department-developed unit of service projections of department productivity. The base statistics are patient days, nursery days, admissions, births, discharges, and outpatient visits. See exhibit A for the base statistic and the department-specific statistic you must work with in your budgeting process. See exhibit B for the base statisticsactual for last completed fiscal year and projected for next fiscal year. Use the projected base statistics in the budgeting process. Exhibit 1 Current Staff Employee Date of Hire Full or Part Base Salary Brown 9/9/99 Full 26,480 Dawson 12/8/2004 Full 28,850 Patel 10/10/2001 Full 27,000 Glass 5/1/2011 Full 18,940 Hanson 7/15/2006 1/2 Time 8.50 / hour Davis 11/1/2011 1/2 Time 10.00 / hour Note: '/2 time employee hours are estimated at 1040 hours per year.You are the HIM Director of Metropolis Hospital. You are being asked to budget for all general operating expenses, capital expenditures, and personnel expenses anticipated for the scal period of December 1 through November 30. You have been given supporting documents including base statistics for the hospital and a document covering the specific needs of the HIM department. Below are the instructions for how your budget should be presented. ADDITIONAL INSTRUCTIONS 1- All gures entered into the budget forms should be rounded to the nearest whole dollar amount. 0 You MUST use Excel formula to calculate your budget. Your instructor should be able to adjust the value in one cell and correctly see the changes in the other values. 0 All \"estimates\" must include a supporting note describing the assumptions. Here is an example of a note included with estimated Annual Gas Expense: (1' week * I tank) * 1'0 Gallon Tank * 4.3 per gallon = 403 per week * 52 weeks/year = $2080 0 You will be graded on presentation. Your budget document should be clear and organized. UNIVERSITY OF ILLINOIS AT CHICAGO HIM 481 - HEALTHCARE FINANCIAL MANAGEMENT Exhibit 1 Quantity Used Medical Record Forms Per Year Price/Unit Discharge summary 1/discharge $20.00/500 History/physical 1/discharge $20.00/500 Operative reports 5/discharge $20.00/500 Consultation reports .3/discharge $20.00/500 General Office Supplies (Pens, pencils, tape, clips, etc.) $1000.00/yr Letterhead and envelopes 5,000 each Letterhead $15.00/500 Envelopes $10.00/500 Computer paper 40 boxes $20.00/box Computer disks 10 boxes $25.00/box Service/License Fees On Mobile file shelving service contract $500/yr (payable January 1) Encoder software license $1500.00/yr (payable July 1) Reproduction/printing 30 pgs x 60% of Medicare $.06/copy discharges & 20 pgs x 20% of non-Medicare discharges Telephone Service Telephone service $10.00/month/employee Long-distance/fax charges $800.00/yr Professional Development State association annual mtg. Registration $350.00 (1 person) Travel 300 miles @ .32/miles = $96.00 Lodging $90.00ight x 2 = $180.00 National seminar/ workshop Registration $250.00 Topic: TBD Travel $525.00 (Airfare- San Francisco) (1 person) Lodging $120.00ight x 2 = $240.00 Coding seminar Registration $110.00/each (2 coders) Travel 300 miles @ .32/miles = 96.00 Lodging $60.00/each Revenue The only revenue the department generates is in the release of information area. Historical data indicate revenue can be projected at an average of $10.00 per record. The volume is estimated at 50% Medicare discharges and 20% non-Medicare discharges.COMPONENTS OF THE BUDGET Departmental budgets at Metropolis Hospital include 5 sheets: Overall Summary, Revenue Budget, Operating Budget, Capital Budget, and Personnel Budget. Overall Summary. List out the categories which have been compiled in each of the supporting budgets. Total them to come up with your final budget request. Include: General Supplies, Services, Other Expenses, Capital Equipment, Wages, Salaries, Fringe Benefits, SubTotal of Expenses, Revenue Estimate, Net Budget Request Revenue Budget. Provide an estimate of revenues expected by source. The purpose of the revenue budget is to forecast revenue from non-patient activity. The budget should reflect any price or fee changes and volume change expected. Include: Source of Revenue, Per Unit Price, Volume Estimate, Total Revenue Operating Budget. The purpose of the operating budget is to forecast all expenditures for office operations exclusive of personnel and major equipment needs. This budget should include supplies, services, and other operating expenses. Much of this budget will be based on last year's historical costs but should be adjusted to reflect anticipated changes. Include: Actual or Estimated Cost, Volume, Total Cost Capital Budget. The purpose of the capital budget is to forecast all expenditures for major equipment. For our budget purpose, a "capital item" is defined as any one item for equipment that exceeds $500 in cost and has a minimum life expectancy of three years. Include: Estimated Cost per Unit, Total Cost, New or Replacement, Description of why item is needed Personnel Budget. The purpose of the personnel budget is to forecast all expenditures for personnel compensation (wages, salaries, and fringe benefits). In calculating personnel compensation, a cost- of-living increase will be given to all employees effective December 1. This will amount to a 4 percent increase in base wage/salary. DO NOT budget for any other types of wage/salary increases for existing employees at this time. Fringe benefits will be calculated at 22 percent of gross wages for hourly (clerical/technical) employees and 30 percent of gross salary for monthly (professional) employees.METROPOLIS HOSPITAL HEALTH INFORMATION SERVICES Planning Considerations for the FY Budgeting Process Objectives: 1. To establish a quarterly in-service educational program for the health information services department employees by January 1, at a cost not to exceed $400 per program/session. 2. To establish a trauma registry program by March 1, at a cost not to exceed $70,000 this rst budget year. Regarding Objective 1: It is NOT anticipated that any additional personnel or equipment will be necessary to accomplish this objective. In-service will be done using rented video presentations, presentations by hospital personnel, or presentations by outside speakers, here by invitation. Presentations by outside speakers will be mded at the level of $100fhour as an honorarium and a $.351mile travel reimbursement per hospital policy. Regarding Objective 2: This will necessitate the hiring of a ill-time position to lnction as registrar. He or she will need to be hired three months before the program goes into effect to allow for preliminary program development. It will be necessary to purchase a desk, two chairs, a telephone set, a microcomputer, and software to equip this new employee's work area. . Projected salary: $40,000 0 Benets: 22% if hourly; 30% if salaried o Desk cost: $350 0 Chair cost: $110 a PC workstation: $1,500 a Software:$3,000 Other considerations: One of the PC workstations in the transcription area of the department is six years old and requires replacement. You plan to replace it during this budget period. You are to project the following expenses for the next budget year based on an analysis of your last year's usage and on your expected changes during the year. 0 A subscription to Medical Records Brieng.- $185year (due 111) 0 A subscription to Topics in Heat's?! Information Management: $951year (due 4.11) o CPT (for new year): two copies available January 1, $30 each