Operating expenses
Changes in assumptions for 2015 % increase Multiplier Dr. Avery now works a full year but still only four days a week. Dr. Avery's nurse now also works a full year. Dr. Avery's malpractice will double now that she is full time. Dr Amanda now works five days a week. All DO's receive pay raise 5.0% 1.050 Malpractice premiums increase 7.0% 1.070 All other staff salaries increase 3.5% 1.035 Lease costs per sq. ft remain the same 0.0% 0.000 Utility costs increase: cost per square ft. 2.5% 1.025 Misc facility costs increase 3.0% 1.030 Other insurance increases 7.5% 1.075 S, G and A increases 5.5% 1.055 Assume that Dr. Avery Belloff will now work a full year (12 mos) instead of the 6 months in 2014 and receive increase in pay commensurate with increase in workload % increase Multiplier 1.035 3.5% 2.0% 1.020 1.035 Changes in assumptions for 2016 Dr Robert Belloff joines staff works, six months, five days a week. Assume annualized Salary per FTE would be $110K and malpractice $1500 ($3,000*.5) Add one new nurse to assist new DO for 2016 at same average salary as others. All other DO's receive pay raise Malpractice premiums increase All other staff salaries increase Lease costs per sq. ft remain the same Increase office space 220 Sq ft to add new physician. Assume one exam room and physician office Increase office space 400 Sq ft to add the new onsite-lab Utility costs and misc facility costs increase Other insurance increases 5, G and A increases 3.5% 0.0% 0.000 1.5% 1.015 4.0% 1.040 3.5% 1.035 Changes in assumptions for 2015 % increase Multiplier Dr. Avery now works a full year but still only four days a week. Dr. Avery's nurse now also works a full year. Dr. Avery's malpractice will double now that she is full time. Dr Amanda now works five days a week. All DO's receive pay raise 5.0% 1.050 Malpractice premiums increase 7.0% 1.070 All other staff salaries increase 3.5% 1.035 Lease costs per sq. ft remain the same 0.0% 0.000 Utility costs increase: cost per square ft. 2.5% 1.025 Misc facility costs increase 3.0% 1.030 Other insurance increases 7.5% 1.075 S, G and A increases 5.5% 1.055 Assume that Dr. Avery Belloff will now work a full year (12 mos) instead of the 6 months in 2014 and receive increase in pay commensurate with increase in workload % increase Multiplier 1.035 3.5% 2.0% 1.020 1.035 Changes in assumptions for 2016 Dr Robert Belloff joines staff works, six months, five days a week. Assume annualized Salary per FTE would be $110K and malpractice $1500 ($3,000*.5) Add one new nurse to assist new DO for 2016 at same average salary as others. All other DO's receive pay raise Malpractice premiums increase All other staff salaries increase Lease costs per sq. ft remain the same Increase office space 220 Sq ft to add new physician. Assume one exam room and physician office Increase office space 400 Sq ft to add the new onsite-lab Utility costs and misc facility costs increase Other insurance increases 5, G and A increases 3.5% 0.0% 0.000 1.5% 1.015 4.0% 1.040 3.5% 1.035
