Question
INTRODUCTION You have been retained by a Physician practice to perform some forecasted financial information. Ac me Physician Healthcare Group is considering adding a new
INTRODUCTION
You have been retained by a Physician practice to perform some forecasted financial information. Acme Physician Healthcare Group is considering adding a new physician to their group. Since this is their first time looking into expanding their physician base, they need someone who has an objective perspective, plus experience in developing and evaluating forecasted financial and utilization data. You have been retained to serve this role.
To assist you in this project, the Company has provided you with the following:
A listing of the Revenue, Utilization and Expense Assumptions associated with the potential hire/addition of a new physician. A template for the calculation of the monthly and annual forecasted pre-tax income for the twelve-month period. DELIVERABLES
To complete your task, you will need to deliver the following documents to management for their review and approval:
1. Forecast of the twelve-month monthly revenue and patient utilization. 2. Forecast (pro forma) of the monthly and annual Pre-Tax Income Statement for the twelve-month period. These documents need to be in Excel, for easier review and approval. They need to be formal; however, in that each document needs to be appropriately titled and presented. You may solicit the help of your fellow colleagues (students), and your Supervisor (Instructor), in understanding how to capture and present the information.
In addition to the excel documents, a one-two page memo is required. This memo will
1. Briefly outline your results 2. Highlight any areas of concern with the forecasted results. Include any proposed changes/modifications to be considered by the Company. 3. Provide proposed recommendation(s), to the Company whether to proceed with the addition/hire of the new Physician. REVENUE & UTLIZATION: # Of Capitated Lives Under Contract in Month 1. # of Capitated Lives Increases by 2.5% Each Month (thru Month 12). Amount of Payment per Month for Capitated Life (PMPM) # of Patients Seen in Month 1 (3.6% of Month 1 Capitated Lives). % of Patients Seen in Month 1 of Enrolled Lives (Capitated Lives). # of Patients Seen Increases by 9% each Month for Months 2 - 12. EXPENSES: Annual MD Salary Benefits Paid on Behalf of MD (Employer Taxes & "Perks") Office Salary - Fixed Office Salary - Variable (labor cost a function of the # of patients treated). Benefits Paid on Behalf of Office Staff (Employer Taxes, Work Comp, Sick Time, Vacation, and Holidays) Medical Supplies (Fixed) - Monthly Medical Supplies (Variable - per Patient) Office Supplies - Monthly Rent - Monthly (Includes Electric, Gas, Water & Trash) Phones - Monthly (Inlcudes Office, Cell Phones & Answering Service) Business & Malpractice Insurance - Annual IT, Billing & Medical Records Costs - Monthly Medical Equipment Costs - Monthly Business Development/Marketing Costs - Annual Legal & Accounting Costs - Annual Other Operating Expenses - Monthly (Continuing Education, Dues, etc.) TBD Annual MD Bonus = 25% of Annual Pre-Tax Income, Not to Exceed $50,000.
INTRODUCTION
You have been retained by a Physician practice to perform some forecasted financial information. Acme Physician Healthcare Group is considering adding a new physician to their group. Since this is their first time looking into expanding their physician base, they need someone who has an objective perspective, plus experience in developing and evaluating forecasted financial and utilization data. You have been retained to serve this role.
To assist you in this project, the Company has provided you with the following:
DELIVERABLES
To complete your task, you will need to deliver the following documents to management for their review and approval:
These documents need to be in Excel, for easier review and approval. They need to be formal; however, in that each document needs to be appropriately titled and presented. You may solicit the help of your fellow colleagues (students), and your Supervisor (Instructor), in understanding how to capture and present the information.
In addition to the excel documents, a one-two page memo is required. This memo will
| REVENUE & UTLIZATION: | |
| # Of Capitated Lives Under Contract in Month 1. | |
| # of Capitated Lives Increases by 2.5% Each Month (thru Month 12). | |
| Amount of Payment per Month for Capitated Life (PMPM) | |
| # of Patients Seen in Month 1 (3.6% of Month 1 Capitated Lives). | |
| % of Patients Seen in Month 1 of Enrolled Lives (Capitated Lives). | |
| # of Patients Seen Increases by 9% each Month for Months 2 - 12. | |
| EXPENSES: | |
| Annual MD Salary | |
| Benefits Paid on Behalf of MD (Employer Taxes & "Perks") | |
| Office Salary - Fixed | |
| Office Salary - Variable (labor cost a function of the # of patients treated). | |
| Benefits Paid on Behalf of Office Staff (Employer Taxes, Work Comp, Sick Time, Vacation, and Holidays) | |
| Medical Supplies (Fixed) - Monthly | |
| Medical Supplies (Variable - per Patient) | |
| Office Supplies - Monthly | |
| Rent - Monthly (Includes Electric, Gas, Water & Trash) | |
| Phones - Monthly (Inlcudes Office, Cell Phones & Answering Service) | |
| Business & Malpractice Insurance - Annual | |
| IT, Billing & Medical Records Costs - Monthly | |
| Medical Equipment Costs - Monthly | |
| Business Development/Marketing Costs - Annual | |
| Legal & Accounting Costs - Annual | |
| Other Operating Expenses - Monthly (Continuing Education, Dues, etc.) | |
| TBD | Annual MD Bonus = 25% of Annual Pre-Tax Income, Not to Exceed $50,000. |
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Accounting In Emerging Economies
Authors: Mathew Tsamenyi
1st Edition
1849506256, 9781849506250
