Problem # 4

As the Administrator of your Hospital, you have just presented your 2012 hospital

budget to your Board of Trustees:

Operating Budget:

Total revenues $ 525,000,000

Total expenses 492,000,000

Net Income $ 33,000,000

Statistics Budget:

2012 Inpatient Discharges 65,625

There is no outpatient volume

Q. 2 - Thirty days after presenting the budget, you learn that the revenue budget is

overstated by $30 million due to significant payment reductions. How many additional

discharges would you need to maintain total revenue at the budgeted level?