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We start with forecasting professional staff expense, with the most expensive resource: the physicians. Below is the DO staffing for the year (this is taken directly from the revenue forecast as you can see): 2014 Historical data: patient volume and office visit data Office visits distribution by CPT code Totals 25% 30% 25% 15% 5% 100% Patients Work weeks FTE Patient visit 99211 99212 99213 99214 99215 # of days Avg patient in the office/v per day Physician per week this year per year 5 30 150 1.0 6900 1725 2070 1725 1035 6900 46 46 345 322 5 28 140 1.0 6440 1610 1932 1610 966 6440 Richard Belloff, DO Keith Belloff, DO Amanda Belloff, DO Chase Belloff, DO Avery Belloff, DO* 4 30 120 46 0.8 5520 1380 1656 1380 828 276 5520 5 28 140 48 1,0 6720 2016 1680 1008 336 6720 1680 624 4. 26 104 24 0.4 2496 749 624 374 125 2496 Total patient office visits 4.2 28076 7019 8423 7019 4211 1404 28076 * Dr. Avery Belloff started work on 7/1/2014 so she only worked half of this year. So, we can project the costs of these physicians based on the following assumptions: Physician Total DO compensation/costs FTE Richard Belloff, DO Keith Belloff, DO Amanda Belloff, DO Chase Belloff, DO Avery Belloff, DO* Totals Salary @ 2014 *Fringes @ Total with fringes** FTE Expense 35% 1 $ 165,000 $ 165,000 $ 57,750 $ 222,750 1 $ 150,000 $ 150,000 $ 52,500 $ 202,500 0.81 $ 150,000 $ 120,000 $ 42,000 $ 162,000 1 $ 125,000 $ 125,000 $ 43,750 $ 168,750 0.4 $ 120,000 $ 48,000 $ 16,800 $ 64,800 4.2 $ 710,000 $ 608,000 $ 212,800 $ 820,800 ***Malpractice Annual 5,000 $ 6,500 $ 5,000 $ 3,000 $ 1,500 $ 21,000 $ 227,750 $ 209,000 $ 167,000 Four days a week, full year $ 171,750 $ 66,300 Four days as week, half year. $ 841,800 **Assume 35% of pay, includes vacation pay, sick, days, health insurance, and 401K. *** Varies by age of DO, claims history, and hours, weeks worked. ****Keep in mind that all the DO are also partners. They will share in any practice profit or loss at the end of the year. Sub-totals Totals Staffing # $ Physician staffing costs (see above) Nurse assistants Administrative personnel Clinic Administrator Annual Cost 4.2 See above 4.2 $40,000 2 $ 30,000 1 $ 100,000 841,800 $168,000 $60,000 $100,000 Total staffing costs-all types 11.4 $ 1,169,800 H Total staffing costs-all types 11.4 $ 1,169,800 Facility costs Rate sq ft Sq.ft 200 3540 800 $13.00 3.00 $ 3540 Lease space assumptions Admin staff Reception DO offices 5 @100 Exam rooms-5 @ 120 Nurse's station Office lease-$13. per square ft Utilities Insurance (does not include Malpractice) Misc facility related $ $ $ 500 46,020 10,620 15,000 7,500 600 $ 350 300 Total facility costs $ 79,140 $ 79,140 200 Storage Lounge/kitchen Sub-total Aisles/dead space-20% Total space 2950 590 Selling, General, and Administrative 3540 $ $ Advertising and promotion Accounting professional fees Other consulting and professional fees Misc 30,000 20,000 15,000 10,000 S $ Total S, G, and A $ 75,000 S 75,000 Total operating expenses for 2014 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 We start with forecasting professional staff expense, with the most expensive resource: the physicians. Below is the DO staffing for the year (this is taken directly from the revenue forecast as you can see): 2014 Historical data: patient volume and office visit data Office visits distribution by CPT code Totals 25% 30% 25% 15% 5% 100% Patients Work weeks FTE Patient visit 99211 99212 99213 99214 99215 # of days Avg patient in the office/v per day Physician per week this year per year 5 30 150 1.0 6900 1725 2070 1725 1035 6900 46 46 345 322 5 28 140 1.0 6440 1610 1932 1610 966 6440 Richard Belloff, DO Keith Belloff, DO Amanda Belloff, DO Chase Belloff, DO Avery Belloff, DO* 4 30 120 46 0.8 5520 1380 1656 1380 828 276 5520 5 28 140 48 1,0 6720 2016 1680 1008 336 6720 1680 624 4. 26 104 24 0.4 2496 749 624 374 125 2496 Total patient office visits 4.2 28076 7019 8423 7019 4211 1404 28076 * Dr. Avery Belloff started work on 7/1/2014 so she only worked half of this year. So, we can project the costs of these physicians based on the following assumptions: Physician Total DO compensation/costs FTE Richard Belloff, DO Keith Belloff, DO Amanda Belloff, DO Chase Belloff, DO Avery Belloff, DO* Totals Salary @ 2014 *Fringes @ Total with fringes** FTE Expense 35% 1 $ 165,000 $ 165,000 $ 57,750 $ 222,750 1 $ 150,000 $ 150,000 $ 52,500 $ 202,500 0.81 $ 150,000 $ 120,000 $ 42,000 $ 162,000 1 $ 125,000 $ 125,000 $ 43,750 $ 168,750 0.4 $ 120,000 $ 48,000 $ 16,800 $ 64,800 4.2 $ 710,000 $ 608,000 $ 212,800 $ 820,800 ***Malpractice Annual 5,000 $ 6,500 $ 5,000 $ 3,000 $ 1,500 $ 21,000 $ 227,750 $ 209,000 $ 167,000 Four days a week, full year $ 171,750 $ 66,300 Four days as week, half year. $ 841,800 **Assume 35% of pay, includes vacation pay, sick, days, health insurance, and 401K. *** Varies by age of DO, claims history, and hours, weeks worked. ****Keep in mind that all the DO are also partners. They will share in any practice profit or loss at the end of the year. Sub-totals Totals Staffing # $ Physician staffing costs (see above) Nurse assistants Administrative personnel Clinic Administrator Annual Cost 4.2 See above 4.2 $40,000 2 $ 30,000 1 $ 100,000 841,800 $168,000 $60,000 $100,000 Total staffing costs-all types 11.4 $ 1,169,800 H Total staffing costs-all types 11.4 $ 1,169,800 Facility costs Rate sq ft Sq.ft 200 3540 800 $13.00 3.00 $ 3540 Lease space assumptions Admin staff Reception DO offices 5 @100 Exam rooms-5 @ 120 Nurse's station Office lease-$13. per square ft Utilities Insurance (does not include Malpractice) Misc facility related $ $ $ 500 46,020 10,620 15,000 7,500 600 $ 350 300 Total facility costs $ 79,140 $ 79,140 200 Storage Lounge/kitchen Sub-total Aisles/dead space-20% Total space 2950 590 Selling, General, and Administrative 3540 $ $ Advertising and promotion Accounting professional fees Other consulting and professional fees Misc 30,000 20,000 15,000 10,000 S $ Total S, G, and A $ 75,000 S 75,000 Total operating expenses for 2014 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