How would the operating budget for the simulated medical center/ hospital look like in a table or spreadsheet based on the information in the mock transcript and voicemail

below? I have attached a picture of the financial statement to review. Thank you.

Revenue and expenses through the current month of the current year.

Revenue and expenses for the rest of the current fiscal year based on the assumptions in information below

Budget for the next fiscal year.

VOICEMAIL FROM George C. (CFO):

Hi, it's George. I hear you're working on a budget for the Med-Surg department for FY 2019. I'd like you to come to the budget meeting this afternoon, because I'm going to be sharing some numbers that are likely to have an impact on your budget. I've sent you the year-to-date statements through December, the overall budget for the year, and the year-to-date budget variance for your department. Take a look at them and bring them with you to the meeting. See you later!

BUDGET MEETING CALL:

George C.,CFO

Hi, everyone. Thanks for coming. We've got some important numbers to go through and a big challenge to respond to, so I think we better get started.

Jerry,Vice President of Operations

That sounds ominous.

Newman,Vice President of Medical Support

Well, can we at least get an idea of how we're doing year-to-date before you go to the 40,000-foot level?

George

I think you might

need to hear this first. Here's the situation: The hospital has to cut

operating expenses by 5 percent for next fiscal year.

Kramer,Director of Clinical Operations

I'm sorry, did you

say 5 percent? Operating expenses?

George

That's right.

Jerry

That's a big ask. We're already operating awfully lean.

George

Agreed. But it's the

situation we're in. I'll get to the reasons, but based on what I'm going to go

over, I just want everyone to keep in mind that we can't make assumptions we

were making before. So let me give you an overview of the budget and the

year-to-date numbers, and I think you'll see why we're going to have to make

those cuts.

Now, last year, for

the entire hospital, we assumed that we would see $1.2 billion in total patient

revenue. But as you can see, for half the year, we've only hit just over $607

million. By this point in the year, we should be over $612 million. So already

in terms of total patient revenue, we've got a deficit of nearly $5 million

that we didn't expect. The problem is made worse when we see that other

operating revenue is also under budget by $1.5 million.

I believe that

recent efforts in the billing department coupled with some of the solid work by

the c-suite team on physician engagement and external marketing are going to

have an impact on the revenue side of things. We're also currently negotiating

with a couple of our primary commercial payers, but those negotiations remain

uncertain. All things considered, I'm hoping for about a 5% bump on the revenue

side for FY 19. Our operating expenses are fairly close to target so far this

year, but given the situation with uncertain revenue, we will need to try to

find some additional cost savings opportunities. I want to be reasonably

conservative in case market conditions change or negotiations with our payers

don't go as expected.

Newman

Wow. Well, okay, so

that's the reality. What's the timeline? How long do we have to make these

cuts?

George

Well, implementation

is obviously by June 30 since the next fiscal year starts July 1. The board

will approve the new budget probably by mid-June, but all the negotiation at

the unit and department level will be going on this month. Our first official

budget committee meeting is in early May. So I'd suggest getting your ducks in

a row within the next week or so.