Please help. You will need to use Microsoft Word and Excel. Tables referenced in the case study are located in the Excel files attached labeled "Case Study Tables".

Part 2Budget Analysis

Table 1 includes PCS's proposed budget for 2018. Using this as a basis, develop a revenue and expenses budget for each PCS center. Note that professional reading fees and laboratory expenses are variable costs that need to be allocated based on the type of visit. Generally, an occupational health visit (Categories 8 and 9 on Tables 2 and 3) including all physicals has reading and laboratory costs 1.4 times what a general medical visit incurs (Category 1, 2, or 3). For each line item in the budget, indicate whether the item is a fixed or variable expense and the basis of allocation or assignment for the budget for each center. Each center is expected to generate approximately the same profit margin. Given your analysis, will it? Should management change its expectations regarding average revenue per visit by center?

Part 3Monthly Cash Budget

Table 4 includes the 2018 budget for Jasper Gardens Nursing Home. For your monthly cash budget, assume that one-twelfth of cash expenses and revenues are incurred per month. Use the following aging analysis to estimate cash inflows. What are the management implications of this analysis?

Table III.4 Aging Analysis

Percent of Bills Paid in Cash Within days of Billing

Days

30 or less

31-60

61-90

91-120

121-150

Medicare

5

20

30

40

5

Medicaid

0

25

25

25

25

Commercial

Insurance

25

25

25

10

15

Private Insurance

30

30

30

10

0

Self-Pay

40

30

20

0

10

VA

25

15

10

45

5

Assume that Accounts Receivable - Net as of December 31, 2017, are the same percentage as anticipated revenue to be earned during 2018.

Part 4Webster Hospital?Long-Term Debt Financial Analysis

OHA has indicated that we should maintain a debt to asset ratio no higher than 40 percent. Given this, how much additional long-term debt could have been added in 2017? We would use this additional debt to finance new construction, renovations, and the acquisition of technology. To finance this additional long-term debt we would use bonds. As such, we need to assess our credit worthiness. The following are the select median values for specific financial ratios for hospitals that received "below investment grade (BBB)" and "high investment grade (AA)" bond ratings.

Assess and report Webster's position with recommendations. Are Webster's bonds more likely to be rated as AA or BBB? Why?

Table III.5

Comparison of Financial Ratios by Bond Rating

Bond Grade

Days Cash on Hand

AA

194

BBB

53.6

Days in Accounts Receivables

58.0

47.7

Days in Current Liabilities

62.3

64.7

Cash to Debt (%)

153.9

37.9

Total Margin-%

4.1

(0.3)

Salaries and benefit costs as

% of Total Revenue

49.9

56.3

Average Age of Plant (years)

9.5

13.4

Capital Expenditures

as % of Depreciation Expense

169.9

76.2

Our annual interest cost of long-term borrowing would be 3.0 percent if our bonds were rated "high grade" and 7.5 percent if rated "below investment grade." Assume that ten- year bonds are used to finance this additional debt. What would be the annual principal and interest payment for this amount? Can Webster Hospital afford this increased annual expense? Note that for every $100,000 borrowed over ten years, our monthly payments would be $989 at 3.5 percent or $1,136 at 6.5 percent.

Part 5Surgery for Middleboro

As you are aware, Medical Associates has achieved its targeted utilization and financial projections for ambulatory surgery in Jasper. It is now time to consider a similar service at our offices in Middleboro. The physical facilities needed for ambulatory surgery will cost $450,000. Our cost of capital is 4 percent and the hurdle rate is 6 percent. The anticipated salvage value of these new fixed assets will be $150,000 after five years. To complete this we will need to recruit two new general surgeons for our Jasper office, thereby freeing our Middleboro general surgeons to work in this new ambulatory surgical facility. We anticipate opening no earlier than January 2, 2016

Based on operational estimates, we anticipate that this project's annual operational revenue will exceed its operational expenses (R-E) for each of the first five years in accordance with the following schedule. Note that the operational expenses include all direct costs including salaries and benefits.

Table III.6

Fiscal Implications of New Ambulatory Surgery Service

R-E ($)Median Cases per Day (M-F)

Year 01

20,000

9.0

Year 02

40,000

10.0

Year 03

60,000

12.5

Year 04

100,000

12.5

Year 05

140,000

14.0

We estimate that this unit, employing the standard RVU system used in hospitals, will generate 1.1 surgical procedures per case. Assess the financial implication. Should we complete this? Why?

Part 6 Hospital Discounts

A coalition of key area employers has approached MCH or WH demanding an additional 10 percent discount per patient day for all of their employees admitted to the hospital. If not offered, they will change their health insurance to favor the one hospital in Middleboro with the lowest prices. What would be the implications of such a change? Structure the analysis that would be undertaken to respond to this demand.

Part 7 Medicaid Expansion

The state legislature and governor have just rejected additional Federal funding for Medicaid expansion. Assess the financial impact of this decision on MCH or WH.

Part 8 New Primary Care Practices in Jasper

Determine the costs to MCH of establishing two new primary care practices in Jasper. The analysis should include estimates of all costs (recruitment, compensation arrangements, facility, staffing, information technology, etc.) and assess the advantages and disadvantages of leasing or purchasing building space.

Proposed Operational Budget for 2018 Patient Revenue 2,424,000 Deductions 198,768 Net revenue 2,225,232 Salaries and wages 1,181,200 Staff benefits 425,230 Administrative expenses 21,500 Advertising 3,000 Collection fees 1,800 Consultants 3,750 Computer support 34,000 Equipment leases 4,100 Insurance 28,100 Laboratory 49,000 Laundry and housekeeping 13,500 Legal/audit 8,450 Medical supplies 64,750 Printing and postage 11,000 Professional fees 28,000 Rent 78,500 Repairs 3,500 Telephone 11,000 Utilities 19,200 Depreciation 73,000 Bad debt expenses 10,400 Total expenses 2,072,980 Expenses Income (loss) before taxes 152,252 Taxes Income (loss) after taxes 60,901 91,351 NOTE: Budget parameters Visits, budgeted Average revenue per visit ($) with no increased basic visit fee Alpha Beta Total 7,500 5,100 12,600 160 240 Alpha Center Patient Records, August 4-9, 2017 DAY 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NUM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 ART 815 817 819 820 822 822 830 833 855 905 910 915 925 1000 1012 1025 1105 1108 1203 1209 1215 1230 1245 1250 1255 1320 1345 1355 1420 1430 1435 1435 1512 1517 1537 1539 1545 1550 1555 1600 1600 1610 1625 1630 1645 1705 AGE 23 64 34 45 17 56 19 7 56 32 34 23 21 54 51 56 49 23 45 71 71 23 28 45 47 45 22 19 34 25 68 43 3 50 63 21 56 66 19 50 43 68 50 23 18 27 TOWN 1 2 1 1 6 4 6 4 1 2 4 1 7 6 1 1 4 4 2 1 1 4 1 2 1 1 2 1 1 1 1 1 2 7 2 2 1 1 1 2 2 1 2 1 1 2 SEX 2 2 2 2 2 1 1 1 2 2 1 2 2 1 1 2 1 1 1 1 1 1 1 2 2 2 1 2 2 1 1 1 1 1 1 2 1 2 1 1 1 1 1 1 1 1 FIRST 1 2 3 2 1 1 2 3 1 1 2 1 2 1 1 2 2 1 2 2 2 2 2 1 2 3 1 1 2 2 2 2 1 2 2 2 2 2 1 1 2 2 2 2 1 2 INS 1 1 1 1 1 8 2 1 1 1 1 9 9 1 8 1 1 8 8 3 3 8 8 1 1 1 8 8 9 2 3 1 1 1 1 8 9 3 8 9 9 3 9 1 1 8 PHY 2 2 2 2 2 2 2 2 2 2 2 1 1 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 CHGE 120 120 96 124 120 288 120 96 120 128 120 80 80 120 276 120 126 279 243 120 140 212 230 145 120 96 201 212 80 201 201 201 120 120 209 201 80 250 270 201 201 230 350 212 208 212 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 1 2 3 4 5 6 7 8 1740 1750 1800 1830 1830 1850 812 824 833 845 905 910 925 1010 1030 1055 1120 1205 1215 1215 1309 1310 1320 1400 1420 1421 1425 1507 1515 1555 1610 1620 1630 1650 1705 1720 1800 1810 1820 1825 801 810 825 835 845 915 920 950 45 61 57 42 40 34 45 23 35 23 55 19 21 33 33 33 68 61 35 4 29 25 23 55 21 21 23 50 67 4 30 24 28 37 25 22 56 77 54 32 24 45 2 34 66 44 26 23 2 2 4 1 1 2 4 1 8 1 1 1 4 2 1 2 2 1 1 1 7 6 2 8 7 1 2 2 2 1 1 2 2 1 2 1 1 1 1 1 2 1 4 1 1 1 4 1 2 1 2 2 1 1 1 2 1 2 2 1 2 1 2 1 1 2 1 1 1 2 2 1 2 2 2 2 1 1 2 1 1 1 2 2 2 1 1 1 1 1 1 1 2 1 1 2 2 1 1 2 1 1 2 1 1 2 2 2 2 1 2 1 2 2 1 1 1 1 1 1 1 1 1 2 1 3 1 1 1 2 2 1 1 2 1 2 1 2 1 1 2 1 1 1 1 8 1 1 1 2 9 1 9 2 2 1 1 8 2 9 3 8 9 1 9 1 1 2 1 8 1 2 3 2 9 1 9 8 1 1 8 9 1 1 1 8 1 1 3 9 9 1 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 1 2 2 2 2 1 2 2 2 1 2 2 2 2 2 1 2 1 2 2 2 2 1 2 2 2 2 2 2 2 1 1 2 240 201 120 120 120 120 400 120 201 120 120 120 120 201 130 275 96 201 130 120 120 120 120 130 143 240 156 138 120 145 400 120 80 201 120 120 201 300 120 120 120 201 120 120 150 80 300 120 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1 2 3 4 5 6 7 8 1020 1040 1105 1130 1145 1200 1210 1245 1315 1315 1420 1450 1510 1520 1530 1600 1630 1715 1805 810 815 840 850 930 1000 1020 1050 1130 1205 1230 1245 1400 1430 1530 1600 1610 1620 1630 1730 1845 800 815 825 915 940 1000 1000 1045 21 25 28 69 52 50 24 21 22 21 69 23 17 14 25 31 45 55 61 17 4 25 7 36 44 9 44 47 34 29 28 44 12 50 23 26 39 69 30 38 13 22 23 19 36 45 23 60 6 1 1 1 2 2 1 7 7 2 4 4 7 2 2 2 1 1 2 1 2 4 1 8 2 2 1 1 4 6 1 1 1 2 1 1 2 2 1 1 1 1 2 9 7 2 2 1 2 1 2 2 1 2 2 2 1 2 1 1 2 1 1 2 2 1 1 2 1 2 1 2 2 2 2 2 1 2 2 2 1 2 1 2 2 2 2 1 1 2 2 2 1 1 1 1 2 1 1 2 1 2 2 3 2 2 3 2 2 1 1 3 2 2 1 1 1 1 3 1 1 1 2 1 1 2 3 1 2 2 1 2 2 2 2 2 2 1 1 1 2 1 2 3 1 1 8 3 1 8 2 1 8 8 1 8 9 8 2 1 1 1 1 8 2 9 2 9 9 1 8 2 8 8 2 2 1 8 1 9 9 3 1 1 1 9 1 2 2 9 9 2 2 2 2 2 2 2 2 2 2 2 1 2 1 2 2 2 2 2 2 2 2 1 2 1 1 2 2 2 2 2 2 2 2 2 2 1 1 2 2 2 2 1 2 2 2 1 1 2 135 120 201 120 120 156 130 135 201 250 150 201 250 201 120 96 120 120 120 201 120 95 96 250 400 120 201 120 201 237 140 150 120 201 120 80 300 160 145 160 120 300 120 120 120 300 300 96 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1130 1215 1230 1240 1250 1310 1320 1350 1440 1510 1540 1620 1650 1715 1730 1730 1800 1820 1830 900 900 905 915 930 1000 1015 1015 1025 1040 1050 1100 1105 1115 1130 1145 1200 1215 1220 1230 1240 1240 1300 1315 1320 59 52 35 21 66 45 23 21 37 40 50 66 45 54 74 3 19 47 57 35 12 27 44 55 23 19 7 70 24 17 19 24 16 44 48 8 76 35 50 9 23 37 61 50 1 4 4 7 2 2 1 1 1 6 9 8 2 2 1 1 2 2 2 2 2 1 2 2 3 2 7 9 8 9 2 1 2 8 2 1 1 2 1 1 2 4 5 1 2 1 2 2 2 2 1 2 1 2 1 2 2 2 1 2 1 2 2 1 1 2 1 2 1 2 2 1 1 2 2 1 2 1 2 1 1 2 1 2 1 1 2 2 2 1 3 1 2 1 1 1 2 2 2 2 1 2 3 2 1 1 2 3 1 2 1 2 1 2 2 1 1 2 2 1 2 1 1 2 2 2 1 2 3 3 2 1 8 2 2 1 2 8 1 1 9 9 2 3 2 8 3 2 8 8 1 9 1 8 9 1 1 9 9 3 9 1 1 2 2 8 8 1 3 8 9 1 1 1 1 1 2 2 2 2 2 2 2 2 1 1 2 2 2 2 2 2 1 1 2 1 2 2 1 2 2 1 2 2 1 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 201 120 96 120 120 201 130 150 400 400 120 130 120 201 120 120 201 201 120 80 201 201 400 120 120 80 201 56 80 76 76 56 76 201 201 120 130 201 80 135 120 120 120 120 6 26 1340 72 2 1 2 3 2 120 TOTALS 189 DAY = 1 = Monday, 2 = Tuesday, 3 = Wednesday, 4 = Thursday, 5 = Friday, 6 = Saturday $30,300 NUM = Arrival order (1 = first person to arrive) ART = Arrival time TOWN: SEX 1 2 3 4 Middleboro Mifflenville Jasper Harris City AGE = Age in years 5 6 7 8 Statesville Carterville Boalsburg Minortown 1 = male, 2 = female FIRST = Is this your first ever visit to a PCS center? 1 Yes 2 No, and it is not a medically ordered return visit. 3 No, it is a medically ordered return visit INS = Insurance coverage/payment 1 Commercial insurance 2 Cash, check, or credit card 3 Medicare 8 Workers' compensation 9 Employer pays PHY = Physical? 1 Yes 2 No CHARGE = Gross billed charges ($) 9 Other Beta Center Patient Records, August 4-9, 2017 DAY 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 NUM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ART 800 810 810 845 845 900 915 930 945 1000 1005 1025 1035 1110 1150 1200 1015 1220 1310 1330 1410 1410 1430 1440 1450 1500 1605 1725 815 830 900 930 950 1015 1050 1120 1145 1215 1230 1250 1305 1310 1345 1400 1430 1500 AGE 44 32 45 66 21 7 34 51 59 40 23 32 40 75 22 19 56 23 34 25 49 69 70 44 25 32 37 40 23 19 25 45 56 8 56 23 50 56 44 47 56 23 58 44 12 40 TOWN 3 3 3 3 5 9 3 3 3 3 5 3 5 5 3 3 3 3 3 9 3 3 9 3 3 3 9 3 3 3 4 3 3 9 3 9 3 3 5 3 3 9 5 5 3 3 SEX 2 1 2 1 1 2 2 2 2 1 1 2 2 2 1 1 2 1 1 1 2 2 2 1 1 2 2 1 1 2 1 2 1 1 1 1 1 2 2 1 2 2 2 1 1 2 FIRST 2 1 1 1 1 3 1 1 1 1 2 1 2 2 1 1 2 1 1 1 2 1 2 3 1 1 2 1 1 1 1 2 1 1 2 1 2 1 2 1 2 1 2 1 1 1 INS 8 1 8 3 8 1 8 8 1 8 9 8 1 1 9 8 9 1 8 1 9 1 3 8 8 1 8 8 1 8 8 1 1 1 2 1 8 8 9 8 9 1 9 1 1 8 PHY 2 2 2 2 2 2 2 2 2 2 1 2 2 2 1 2 1 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 2 2 1 2 1 2 1 2 2 2 CHGE 385 135 370 96 380 150 350 360 180 360 300 310 160 150 300 420 150 160 310 150 150 170 135 96 325 160 375 300 190 280 345 150 140 120 80 80 340 350 250 285 250 130 75 150 150 315 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 19 20 21 22 23 24 25 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 3 4 5 6 7 8 9 10 1520 1520 1545 1610 1630 1645 1705 1730 800 845 920 1030 1110 1150 1200 1240 1250 1330 1600 1640 1700 1715 800 845 915 940 1035 1050 1130 1210 1230 1245 1320 1430 1510 1530 1610 1720 800 815 900 915 945 1015 1030 1140 1205 1210 39 47 50 46 45 23 48 32 23 19 44 32 50 43 50 48 50 9 45 34 56 75 44 46 48 40 23 30 50 27 22 18 23 69 45 23 12 35 23 29 40 48 66 45 33 21 19 45 5 9 5 5 3 3 3 3 3 3 3 3 5 3 3 3 5 3 3 3 3 3 3 3 3 3 9 9 3 5 9 3 3 9 9 3 3 5 5 3 3 9 3 2 3 5 5 3 1 1 1 2 2 1 1 1 1 1 2 1 1 2 2 1 1 2 2 1 1 1 2 1 1 1 1 1 1 1 1 1 2 2 1 2 2 2 1 2 2 1 1 1 2 1 2 2 2 2 1 1 1 2 2 2 1 1 2 2 2 2 2 2 1 3 1 2 1 2 2 2 1 1 1 1 1 1 1 1 2 1 2 2 3 2 2 1 1 1 1 1 3 1 3 2 1 8 8 9 8 1 1 1 1 1 8 2 8 9 1 1 8 2 1 9 9 3 9 8 1 1 8 8 1 3 3 9 1 3 9 1 1 9 9 1 9 9 8 1 1 9 1 8 2 1 2 1 2 2 2 2 2 2 2 1 2 1 2 1 2 2 2 1 1 2 1 2 2 2 2 2 2 2 2 1 2 2 1 2 2 1 1 2 1 1 2 1 2 1 2 2 150 250 250 250 325 140 150 140 160 160 275 150 350 300 150 80 350 96 160 300 300 125 350 375 240 260 350 410 160 160 120 350 140 225 250 160 150 300 280 160 300 300 360 150 96 300 200 340 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 1 2 3 4 5 6 7 8 9 10 11 1240 1250 1300 1320 1340 1400 1430 1500 1520 1540 1600 1700 1710 1710 1710 1740 910 930 1040 1050 1110 1120 1140 1215 1220 1300 1310 60 55 14 23 60 69 45 4 66 19 27 44 50 20 38 34 5 23 43 44 11 48 12 12 56 60 34 3 3 9 3 3 3 3 5 3 5 3 3 9 5 3 9 3 3 3 3 3 9 3 3 3 5 3 1 2 2 2 1 1 2 1 2 2 1 2 1 1 1 2 1 2 1 2 1 2 1 1 1 1 2 2 1 1 1 2 2 2 3 1 2 1 2 1 1 1 2 1 2 2 1 2 2 3 2 2 2 1 2 8 1 9 1 3 8 1 3 9 9 1 1 8 9 1 1 1 9 9 1 1 8 9 9 9 8 2 2 2 1 2 2 2 2 2 1 1 2 2 2 1 2 2 2 1 1 2 2 2 1 1 1 2 101 320 140 300 160 120 340 96 170 240 240 160 180 310 260 140 160 170 300 150 120 150 96 200 200 200 350 6 12 1330 63 3 1 2 3 2 140 TOTALS 122 $27,177 DAY = 1 = Monday, 2 = Tuesday, 3 = Wednesday, 4 = Thursday, 5 = Friday, 6 = Saturday NUM = Arrival order (1 = first person to arrive) ART = Arrival time TOWN: SEX 1 2 3 4 AGE = Age in years Middleboro Mifflenville Jasper Harris City 5 6 7 8 Statesville Carterville Boalsburg Minortown 1 = male, 2 = female FIRST = Is this your first ever visit to a PCS center? 1 Yes 2 No, and it is not a medically ordered return visit. 3 No, it is a medically ordered return visit INS = Insurance coverage/payment 9 Other 1 2 3 8 9 Commercial insurance Cash, check, or credit card Medicare Workers' compensation Employer pays PHY = Physical? 1 Yes 2 No CHARGE = Gross billed charges ($) Statement of Operations for the 12-Month Period Ending December 31, 2013-2017 and the 2018 Budget Statement of Operations Revenue 2018 Budget 2017 2016 2015 2014 4,135,329 215,383 Skilled care Medicare Part A Commercial 3,977,963 202,582 3,820,494 225,230 3,820,494 210,494 3,724,383 236,191 3,816,373 1,745,292 97,292 139,292 Intermediate care Medicaid Self-pay VA Private insurance 4,156,604 1,325,988 92,083 97,607 4,198,356 1,839,202 92,363 45,393 4,145,291 1,820,394 90,383 23,040 3,953,282 2,134,203 189,243 21,450 10,148,961 Total room and board 9,852,827 10,221,038 10,110,096 10,258,752 Room and board Ancillary revenue 834,282 54,303 Skilled care Medicare Parts A and B Commercial 795,593 38,675 790,373 39,294 713,282 60,393 702,393 50,383 18,373 0 Intermediate care Medicaid Other 19,547 0 14,292 0 13,258 0 16,393 0 906,958 Total ancillary revenue 853,815 843,959 786,933 769,169 Other revenue 21,494 3,200 Interest Miscellaneous 18,417 3,683 13,292 3,125 15,202 5,403 16,729 6,230 24,694 Total other revenue 22,100 16,417 20,605 22,959 11,080,613 Total revenue 10,728,742 11,081,414 10,917,634 11,050,880 (315,230) Less provider tax (313,081) (343,560) (313,596) (302,383) (3,129,492) Less ancillary conractual allowances (3,057,067) (3,100,867) (2,948,202) (3,000,272) 7,635,891 Total net revenue 7,358,594 7,636,987 7,655,836 7,748,225 2017 2016 2015 2014 1,789,393 556,933 103,272 62,701 1,800,249 555,002 105,230 68,303 1,840,292 550,383 107,292 64,393 1,934,929 480,272 107,252 58,303 Expenses 2018 Budget Salaries 1,790,400 560,304 120,494 65,202 Nursing Dietary Ancillary-PT Ancillary-OT 24,300 145,892 108,202 135,200 109,303 82,340 75,300 60,203 60,392 3,337,532 Ancillary-ST Ancillary-RT Housekeeping Administration Social services Recreation Physician services Laundry Maintenance Total salaries 22,130 140,155 104,383 131,340 104,838 79,362 73,278 58,964 55,282 3,282,031 20,130 130,202 110,393 141,200 103,292 80,350 70,282 68,002 65,303 3,317,938 25,303 120,303 131,303 178,202 103,202 78,383 82,345 78,393 62,010 3,421,804 27,393 127,303 130,292 204,393 103,684 74,902 88,202 88,303 60,292 3,485,520 1,134,761 Benefits, all 956,838 995,381 1,094,977 1,219,932 4,472,293 Total salaries and benefits 4,238,869 4,313,319 4,516,781 4,705,452 50,000 30,200 33,000 17,500 16,200 12,500 10,500 8,500 8,000 7,893 5,000 2,000 4,500 5,000 1,200 Admin and general Accounting fees Telephone Insurance-general Payroll services MIS management Dues and licenses Office supplies Postage Legal Auto Advertising Misc. bank charges Admin equipment rental Other professional fees Printing and publishing CY 60,000 33,799 30,319 18,228 16,415 13,054 10,424 9,379 8,000 7,893 6,000 3,800 4,785 8,979 1,489 CY-1 60,000 34,292 29,200 18,200 16,000 14,303 8,939 9,100 12,503 7,893 6,000 2,000 5,640 3,502 1,648 CY-2 70,000 35,292 29,500 18,400 16,000 13,500 7,830 9,320 17,394 7,893 5,780 2,560 5,500 3,012 1,102 CY-3 80,000 35,920 34,290 16,393 15,300 17,202 5,920 8,983 12,302 7,893 5,500 2,830 4,950 2,640 1,100 211,993 Total admin and general 232,564 229,220 243,083 251,223 Other operating expenses 25,300 Maintenance supplies 60,383 Maintenance repairs 220,450 Utilities-all 21,340 Oxygen services 277,500 Food 200,450 General supplies 31,500 Laboratory services 210,494 Pharmacy services 10,000 Imaging services 64,897 Medical equipment rental 920,000 Capital lease 200,400 Depreciation-all 24,010 50,880 219,383 20,175 267,039 202,364 28,511 207,494 11,003 64,897 900,000 204,783 22,310 34,272 240,120 18,393 254,499 190,303 32,404 215,450 13,204 64,897 900,000 205,294 22,740 23,784 250,123 17,202 255,206 183,484 28,400 212,340 15,202 64,897 900,000 210,494 21,640 24,450 250,282 14,383 244,351 178,202 23,450 215,202 11,023 60,200 900,000 211,474 2,200,539 2,191,146 2,183,872 2,154,657 2,242,714 Total other Nonoperating expenses 650,000 Management fee 4,000 Bad debt 654,000 Total 600,000 6,600 606,600 750,000 6,000 756,000 550,000 5,325 555,325 500,000 5,270 505,270 7,581,000 Total expenses 7,278,572 7,489,685 7,499,061 7,616,602 7,635,891 Total net revenue 54,891 Pretax profit (loss) 7,358,594 80,022 7,636,987 147,302 7,655,836 156,775 7,748,225 131,623 28,008 52,014 51,556 95,746 54,871 101,904 46,068 85,555 19,212 All taxes 35,679 Profit (loss) after taxes 2013 3,650,292 190,393 3,640,439 2,340,203 83,405 18,450 9,923,182 650,393 47,293 18,363 200 716,249 18,560 3,720 22,280 10,661,711 342,474 (2,947,353) 8,056,832 2013 1,997,239 515,388 113,282 62,120 25,303 136,303 130,282 180,292 103,606 78,393 67,393 98,303 61,202 3,569,106 1,284,878 4,853,984 CY-4 80,000 36,303 40,202 16,300 15,100 13,200 4,320 7,839 14,393 7,893 4,000 3,210 4,640 29,456 867 277,723 20,765 26,780 260,383 18,303 242,993 178,202 287,340 225,202 9,303 60,200 900,000 211,574 2,441,045 400,000 3,120 403,120 7,975,872 8,056,832 80,960 28,336 52,624 HCHHA Table 2.6 Statement of Revenue and Expenses for Calendar Year Ending December 31 2014 2013 Home Care Division 6,736,375 6,322,329 Less allowances for bad debt 85,240 88,340 Less contractual allowances 2,049,283 1,737,912 Net revenue 4,601,852 4,496,077 Private Duty Division 3,165,221 2,843,959 Less allowances for bad debt 65,340 45,230 Less contractual allowances 18,469 12,669 Net revenue 3,081,412 2,786,060 Community Health Division Support from state and towns 208,750 240,000 United Appeal 20,000 20,000 Other 1,935 1,257 Net revenue 230,685 261,257 Total net operational revenue 7,913,949 7,543,394 Expenses Divisional Salaries and wages 4,186,227 4,086,160 Fringe benefits 1,255,868 1,022,548 Travel 725,388 701,383 Supplies 453,778 398,202 Equipment 152,430 122,494 Total divisional 6,773,691 6,330,787 Administrative Salaries and wages 360,233 340,229 Fringe benefits 102,339 98,334 Supplies 157,910 158,705 Equipment 45,929 42,393 Insurance 56,729 54,202 Interest 54,894 53,890 MaintenanceMiddleboro 138,595 79,303 RentJasper office 40,500 40,500 Computer services 84,253 80,150 Travel 18,356 18,430 Heat/lightMiddleboro 11,488 10,004 Legal/audit 55,088 44,411 Printing and postage 15,540 13,450 Telecommunications 21,364 19,560 Staff development 10,060 7,010 Board expenses 10,150 10,445 Publications and memberships 10,700 10,500 Depreciation expense 38,240 39,440 Total administrative 1,232,368 1,120,956 Total expenses 8,006,059 7,451,743 Gain (or loss) from operations 92,110 91,651 Other Income 202,445 245,300 110,335 336,951 Gain (or loss) 2012 5,936,445 72,450 1,365,999 4,497,996 1,893,345 24,550 8,738 1,860,057 240,000 60,000 1,458 301,458 6,659,511 3,604,595 1,021,445 604,387 258,304 82,394 5,571,125 335,110 96,990 140,680 34,220 45,043 53,004 78,380 40,500 73,229 13,450 7,545 28,340 12,000 18,334 7,500 6,342 8,550 44,350 1,043,567 6,614,692 44,819 295,606 340,425