i need help with question 3. I am not sure how to do it or where i find the clinic revenue

Operating Budget A OPERATING BUDGET FOR 2014 JAN INCOME Professional Fees Other Revenue Patient Refunds Refund Insurance Companies EXPENSES Salaries-Physician Owners Payroll Taxes-FICA Physician Payroll Taxes-FUTA Physcian Payroll Taxes-SUTA Physician Insurance-Physician Dues, Memberships, License Fees Meetings & Travel-Physician Meals & Entertainment-Physician Salaries-Primary Care Providers Salaries-Medical Support Salaries-Administrative Payroll Taxes-FICA Staff Payroll Taxes-FUTA Staff Payroll Taxes-SUTA Staff Insurance Staff Pension & Retirement Benefits Meetings & Travel-Staff Supplies-Drugs & Medications Supplies-Medical Supplies-Administrative Supplies-Medical Forms Supplies-Housekeeping/Maintenance Supplies-Computer Laboratory Services Rent-Buildings Utilities Rent/Lease-Furniture & Equipment Depreciation-Medical Equipment Depreciation-Laser Equipment Depreciation-Office Equipment Depreciation-Computer Equipment $ 3,958,456.20 24,000.00 (23,252.00) (8,088.00) 20,040.00 8,940.00 48,768.00 149,508.54 18,960.00 7,908.00 948.00 5,172.00 10,020.00 245,220.00 1,656.00 137,309.52 FEB MAR APR MAY JUNE 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 218,692.31 13,140.64 112.00 235.20 2,860.24 900.00 1,670.00 745.00 5,007.69 33,228.15 21,106.22 4,539.67 474.74 598.17 4,024.41 8,242.70 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 57,692.31 836.54 57,692.31 836.54 57,692.31 ### 57,692.31 836.54 86,538.46 1,254.81 1,350.52 584.00 1,670.00 745.00 5,007.69 33,228.15 21,106.22 4,539.67 435.82 598.17 4,134.51 1,767.70 3,000.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 ### ### ### ### 1,863.07 485.00 1,670.00 745.00 5,007.69 33,352.55 21,248.22 4,560.05 257.47 600.85 4,134.51 1,778.36 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 2,234.54 600.00 1,670.00 745.00 5,007.69 33,352.55 21,332.25 4,566.48 123.23 456.32 4,134.51 1,780.65 ### 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 ### ### ### ### 1,350.52 408.00 1,670.00 745.00 5,007.69 33,609.53 21,341.13 4,586.81 49.83 421.15 4,134.51 1,786.73 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 3,599.19 953.50 1,670.00 745.00 7,511.54 50,580.79 32,011.70 6,892.96 33.70 296.73 3,385.88 2,680.09 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 Franchise Tax Property Taxes Maint/Repair-Furniture & Equipment Accounting Services Legal Services Recruitment Employee Development & Training Employee Relations Uniforms & Laundry General Liability Insurance-G&A Professional Liability Insurance Telephone/Internet Access Postage & Freight Printing Books & Subscriptions Marketing Amortization Bank Fees Interest Expense NET INCOME 750.00 21,204.00 12,912.00 5,400.00 2,580.00 10,380.00 2,436.00 59,616.00 13,380.00 28,500.00 9,300.00 31,560.00 13,620.00 73,656.00 $ 1,767.00 800.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 6,000.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 9,200.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 4,700.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 700.00 1,076.00 450.00 215.00 865.00 203.00 - 3,100.00 1,767.00 1,325.00 1,076.00 450.00 215.00 865.00 203.00 - 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 409,826.20 4,968.00 1,115.00 2,375.00 775.00 2,420.00 2,630.00 1,135.00 6,138.00 233,287.36 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 236,880.68 4,968.00 1,115.00 2,375.00 775.00 16,070.00 2,630.00 1,135.00 6,138.00 244,723.13 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 227,788.83 4,968.00 1,115.00 2,375.00 775.00 2,420.00 2,630.00 1,135.00 6,138.00 293,670.42 (80,566.52) $ 95,972.32 $ Dividends Net Cash after Dividends $ (80,566.52) $ 95,972.32 $ 92,379.00 $ 84,536.55 $ 101,470.86 $ 35,589.26 $36,000.00 $36,000.00 56,379.00 $ 84,536.55 $ 101,470.86 $ (410.74) JULY AUG SEPT OCT NOV DEC 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 329,871.35 2,000.00 (1,937.67) (674.00) 329,259.68 57,692.31 836.54 57,692.31 836.54 57,692.31 836.54 57,692.31 836.54 86,538.46 1,254.81 57,692.31 836.54 2,234.54 535.00 1,670.00 745.00 5,007.69 33,720.53 21,341.13 4,595.31 22.47 76.99 4,134.51 2,048.39 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 1,350.52 580.00 1,670.00 745.00 5,007.69 33,720.53 21,420.63 4,601.39 8.08 43.35 4,134.51 2,051.57 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 1,863.07 225.00 1,670.00 745.00 5,007.69 33,834.53 21,562.12 4,620.93 8.08 28.66 4,134.51 2,055.83 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 2,234.54 1,695.00 1,670.00 745.00 5,258.08 34,066.30 21,886.17 4,682.61 8.08 28.66 4,134.51 2,088.08 ### 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 ### ### ### ### 1,350.52 1,135.00 1,670.00 745.00 7,887.12 51,707.37 32,829.26 7,070.42 12.12 43.00 3,385.88 3,156.43 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 7,849.19 1,085.00 1,670.00 745.00 10,258.08 59,077.32 35,378.92 8,010.64 9.68 39.16 4,134.51 82,839.04 500.00 4,064.00 12,459.04 1,580.00 659.00 79.00 431.00 835.00 20,435.00 138.00 11,442.46 3,170.63 2,627.47 2,974.75 3,563.72 TOTAL 329,871.35 $ 3,958,456.20 2,000.00 24,000.00 (1,937.67) (23,252.00) (674.00) (8,088.00) 329,259.68 3,951,116.20 911,000.00 23,179.12 112.00 235.20 30,140.46 9,185.50 20,040.00 8,940.00 70,976.35 463,478.28 292,563.97 63,266.92 1,443.28 3,231.20 48,006.76 112,275.56 8,500.00 48,768.00 149,508.54 18,960.00 7,908.00 948.00 5,172.00 10,020.00 245,220.00 1,656.00 137,309.52 38,047.56 31,529.64 35,697.00 42,764.64 % 100.19% 0.61% -0.59% -0.20% 100.00% 23.06% 0.59% 0.00% 0.01% 0.76% 0.23% 0.51% 0.23% 1.80% 11.73% 7.40% 1.60% 0.04% 0.08% 1.22% 2.84% 0.22% 1.23% 3.78% 0.48% 0.20% 0.02% 0.13% 0.25% 6.21% 0.04% 3.48% 0.96% 0.80% 0.90% 1.08% 1,767.00 700.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 700.00 1,076.00 450.00 215.00 865.00 203.00 - 1,767.00 700.00 1,076.00 450.00 215.00 865.00 203.00 - 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 228,809.48 4,968.00 1,115.00 2,375.00 775.00 2,420.00 2,630.00 1,135.00 6,138.00 225,653.19 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 228,433.34 17,417.00 ### 1,076.00 450.00 215.00 1,365.00 203.00 8,000.00 16,039.00 4,968.00 1,115.00 2,375.00 775.00 2,420.00 2,630.00 1,135.00 6,138.00 269,005.95 3,272.00 700.00 1,076.00 450.00 215.00 865.00 203.00 - 8,132.00 1,767.00 1,450.00 1,076.00 450.00 215.00 9,865.00 203.00 - 4,968.00 1,115.00 2,375.00 775.00 4,778.00 2,630.00 1,135.00 6,138.00 294,439.45 4,968.00 1,115.00 2,375.00 775.00 6,420.00 2,630.00 1,135.00 6,138.00 383,298.45 $ 100,450.21 $ 103,606.50 $ 100,826.34 $ 60,253.74 $ 34,820.24 $ (54,038.77) $ $36,000.00 $ 100,450.21 $ 103,606.50 $ 750.00 11,232.00 38,359.00 27,675.00 12,912.00 5,400.00 2,580.00 19,880.00 2,436.00 8,000.00 16,039.00 59,616.00 13,380.00 28,500.00 9,300.00 60,838.00 31,560.00 13,620.00 73,656.00 3,275,816.48 0.02% 0.28% 0.97% 0.70% 0.33% 0.14% 0.07% 0.50% 0.06% 0.20% 0.41% 1.51% 0.34% 0.72% 0.24% 1.54% 0.80% 0.34% 1.86% 82.91% 675,299.72 17.09% $36,000.00 $ 144,000.00 64,826.34 $ 60,253.74 $ 34,820.24 $ (90,038.77) $ 531,299.72 Budget B Clinic Revenue Visits Per Year Medicaid % 1560 Medicare % 1170 Other % 390 Charity Care % 390 No Pay % 390 TOTAL VISITS PER YEAR 3900 TOTAL CLINIC REVENUE: Lab Revenue Labs Per Year Number of labs per year 2340 TOTAL LAB FEES: Reimbursement $50.00 $45.00 $60.00 $25.00 $0.00 Reimbursement $25.00 Medication Revenue Medications Per Year Reimbursement Number of meds per year 1950 $20.00 TOTAL MEDICATION REVENUE: Procedure Revenue Procedures Per Year Number of procedures per year 1300 TOTAL PROCEDURE REVENUE: Reimbursement $20.00 TOTAL REVENUE Revenue $78,000.00 $52,650.00 $23,400.00 $9,750.00 $0.00 $163,800.00 Revenue $58,500.00 $58,500.00 Revenue $39,000.00 $39,000.00 Revenue $26,000.00 $26,000.00 $287,300.00 Budget C REVENUES Description Detail Yearly Budgeted Amount Clinic Revenue Lab Revenue Medications Revenue Procedures Revenue Less Contractuals 325 clients per month, 3,900 total visits 163,800.00 195 of billable labs per month, 2340 labs per yea 58,500.00 162 meds per month, 1,950 per year 39,000.00 26,000.00 # of billable procedures done per year Percentage negotiated with payer 114,920.00 402,220.00 TOTAL CLINIC REVENUE EXPENSES Description Detail PAYROLL Provider salary Total salary Receptionist salary LPN salary Total Salary & Wages: Provider FICA Receptionist FICA LPN FICA Salary x 0.0765 Salary x 0.0765 Salary x 0.0765 Total FICA Unemployment Health Insurance Life Insurance Long Term Disability 401K Employer Contribution Total Additional Benefits: Professional Fees Consulting Audit Fee Legal Fees 60,000.00 13,395.00 28,182.00 101,577.00 4,590.00 1,024.68 2,155.92 7,770.60 10,222.08 2,216.00 666.00 13,104.08 TOTAL PAYROLL: OPERATING EXPENSES Supplies Food Misc. Supplies Medications Medical Supplies Office Supplies Printing Postage Yearly Budgeted Amount 122,451.68 UPS, Fed Ex, Postage Accountants fees 100 1,000.00 5,000.00 4,500.00 500.00 500.00 500.00 1,000.00 1,500.00 1,500.00 Licensing Fees Bank Fees Advertising Insurance Worker's Compensation Gen/Pro/Med Mal Clinic 300.00 250.00 5,000.00 1,575.00 liability, professional liability, employment, practice liability, property insturance, etc. Umbrella Ins. D&O Ins. Professional Development Meetings Continuing education for provider and staff Cont. Memberships etc. Exp. Rural Health Association Travel & Entertainment Monies for getting to conference Facility Telephone Utilities Small Equipment & Tools Equipment Rental Capital Equipment Rent or mortgage Maintenance Regular Service Internet Access Water, Electric, Garbage cleaning service, building & grounds upkeep TOTAL OPERATING EXPENSES 15,000.00 830.00 1,000.00 1,000.00 300.00 1,000.00 1,800.00 300.00 5,000.00 300.00 1,200.00 10,000.00 7,200.00 1,600.00 69,755.00 TOTAL EXPENSES 192,206.68 Yearly Budgeted Amount NET INCOME (Loss) [Revenue - Expenses] 210,013.32 EXAMPLE Budget D Total clinic revenue = 250,000 2% increase in total clinic revenue = 5,000 NEW total clinic revenue = 250,000 + 5,000 = 255,000 Monthly total clinic revenue = 255,000/12 = 21,250 Total expenses = 210,000 0.5% decrease in total expenses = 1,050 New total expenses = 210,000 - 1,050 = 208,950 Monthly total expenses = 208,950/12 = 17,412.5 New Computer System Upgrade = 60,000 Monthly cost of computer system upgrade = 5,000 EXAMPLE 12-month Budget D Total Clinic Revenue (with 2% increase) Total Expenses (with 0.5% decrease) New Computer System Upgrade Total Expenses (including computer system upgrade) NET INCOME/LOSS 255,000 208,950 60,000 JAN. 21,250 FEB 21,250 MAR 21,250 17,412.50 17,412.50 17,412.50 5,000 5,000 5,000 APR 21,250 MAY 21,250 JUNE 21,250 JULY 21,250 AUG 21,250 SEPT 21,250 OCT 21,250 NOV 21,250 DEC 21,250 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 TOTAL 255,000 208,950.00 60,000.00 268,950.00 -13,950.00 HM2010: Week 1 Assignment Worksheet Type your name here Before you begin, save this document to your computer. You will need to submit your answers in the area indicated below. DIRECTIONS: 1. Read pages 1-3, 94-107 and 122 of your Revenue Management Manual textbook. 2. Answer the following all questions in this 3 part assignment. 3. Please remember to SAVE this document to your computer or \"My Documents\" on your computer. 4. Submit the saved file to your \"Assignment Drop Box\". Tips for answering questions: Read the question more than twice, if necessary, to make sure you understand what you are asked to do. Find the key words in each question and construct your answer to address those key words or phrases of the question. Your answer should be organized and to the point. Keep your sentences short and simple. Pay attention to the answer length requirements (if stated). If necessary, go the extra mile and give examples or show your work to illustrate your point. Before you continue: Did you save this document to your computer? o No: Please save this document to your computer now. o Yes: Great! Let's get to work! (See next page for part 1) 1 HM2010: Week 1 Assignment Worksheet PART 1: Net Revenue per Patient Using the Patient Cost Analysis Form in the Appendix from your "Revenue Management Manual" text (Form A26), calculate your current costs per patient using the following information. Total Number of Patients Total Expenses Fixed Expenses Total Annual Revenue 16,245 $568,758 $389,600 $1,090,800 10 points What is the Net Revenue per patient? Directions to complete Question 1: TIP: Review page 98 in the Revenue Management Manual Answer: Line 1 Line 2 Line 3 Line 4 Total number of Patients Total Expenses Fixed Expenses Total Patient Expenses = Total Expenses (Line 2) minus Fixed Expenses (Line 3): round to the nearest dollar Total Annual Revenue = Total Receipts Gross Revenue per Patient = Total Annual Revenue (Line 5) divided by Total number of Patients (Line 1): round to the nearest dollar Total Cost per Patient = Total Expenses (Line 2) divided by Total number of Patients (Line 1): round to the nearest dollar Net Revenue per Patient = Gross Revenue per Patient (Line 6) minus Total Cost per Patient (Line 7): round to the nearest dollar Line 5 Line 6 Line 7 Line 8 16,245 $ 568, 758 $ 389, 600 $179,158 Line 1 Line 2 Line 3 Line 4 $ 1, 090, 800 $67,100 Line 5 Line 6 $35,000 Line 7 $32,100 Line 8 SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 2) 2 HM2010: Week 1 Assignment Worksheet PART 2: Reviewing the Budget Use the Operating Budget A (Tab \"Operating Budget A\" in the Operating_Budget_11-11-14.xls file. Compare the month of January to the Month of June. 30 points A. Were these months overbudget or under-budget and why? B. As an office manager what do you see that can be listed as issues in these months? Directions to complete Question 2: Use short responses, in complete sentences with proper grammar and spelling Your answer should be no less than 4 to 8 sentences. TIP for Calculations 1) Use the \"Operating Budget A\". 2) Review \"Preparing a Budget\" in the Highlights/Summary in Week one weekly materials 3) Compare the months of January to the month of June (cells shaded in yellow) 4) Answer (A): Were these months over budget or under budget and why? 5) Answer (B): As an office manager what do you see are the issues in these months? Example: Marketing increased significantly to $16,070.00 in April from $4,778 in January and March. Answer (A): They were under-budget because they had 410.74 left over. Answer (B): The part of earnings not paid to investors is left for investment to provide for a future earnings growth. Investors seeking high current income and limited capital growth prefer companies with high dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate. High growth firms in early life generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors. 3 HM2010: Week 1 Assignment Worksheet SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 3) PART 3: Preparing a Budget for 2012 Use Budget C (located on the 3rd tab \"Budget C\" in the Operating_Budget_11-1114.xls file. ). Make the following adjustments and share your results: A. Clinic Revenue is expected to grow by 3% due to the signing of a new managed care contract. What is the new (monthly) dollar amount for patient revenue due to the 3% increase? B. The cost of expenses is expected to increase to 1.5%. What is the new (monthly) dollar amount for the cost of expenses? 35 points C. A new roof is needed which will cost $50,000. Prepare a new 12 month budget to show the 3% growth in patient revenue, the 1.5% cost of expenses and the cost of the new roof. You can use MS Excel, the 5th tab of the Operating_Budget_11-11-14.xls file titled \"YOUR PART 3 ASSIGNMENT HERE\"; OR, you can use MS Word or Wordpad. TIP for Calculations 1) Use Budget C and make the following adjustments: a. Clinic Revenue is expected to grow by 3% due to the signing of a new managed care contract = (Total Clinic Revenue X 3%) b. Cost of expenses is expected to increase to 1.5% (Total Expenses X 1.5%) 2) A new roof is needed which will cost $50,000 (divide this amount over a period of 12 month to get the amount per month then add the total amount of the roof to the Total expenses to get your (new) overall Total Expenses) SEE \"PART 3 EXAMPLE BUDGET D\". 3) NOTE: Be sure to add the amount that reflects the 3% growth in clinic revenue and the 1.5% increase in total expenses, along with your cost of the new roof. SEE \"PART 3 EXAMPLE BUDGET D\". 4) (Please Review the Budgeting Highlights/ Summary and Page 94-95 of the Revenue Management Manual 4 HM2010: Week 1 Assignment Worksheet Answer: A. The revenue would be $414.286.60 B. The cost expenses would be $211,701.46 would be $269,014.55 C. The new overall expense SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT You will earn additional points if you: correctly submit the worksheet to the assignment dropbox. use proper sentence structure, grammar and spelling. 80 points TOTAL POINTS NEED MORE HELP? Visit the STUDENT SUCCESS CENTER! Contact your INSTRUCTOR, ADVISOR, ACADEMIC COACH 5 5 points