Question 21

2-dt-content-rid 34812235 2/courses/2019101HCA38344279/Budgetingpdr odf 456 Budgeting Exhibit 10-16e Data used to construct ZMG Hospitalist Practice's fixed labor salaries and benefits Number AverageBase Benefit Date ofPercent of FTEs Salary Salary Percent Next Raise Raise 5% 220,000 1,760,000 15% Jul-02 5% 100,000 100,000 20% Nov-02 5% 100,000 100,000 20% Nov-02 5% 15% Feb-02 12 $200,000 $2.400.000 Physician I Physician Il Physician's Assistant Nurse Practitioner Administrative Director Office Staff Office Staff 5% 5% 5% 20% 50,000 50,000 25% 30,000, 90,000 25% Feb-02 Feb-02 Jun-02 100,000 100,000 1 3 All salaries and wages are paid twice monthly in equal amounts. The second payment is made on the last day of each month. Exhibit 10-16f How February's salaries and benefits for physician I category in Exhibits 10-16b through 10-16d were developed Annual Amount Source Item $200.000 5% A Annual base salary/month (Exhibit 10-16e) B Raise C Salary after raise D Benefits percentage E Benefits after raise F Salary and benefits Exhibit 10-16e) A x (1+8) $210,000 15% (Exhibit 10-16e) (C D) (C + B 31,500 $241,500 In calculating the hourly equivalent, estimates were made of both the number of hours that it takes for staff to "do" an RVU if they worked at 100 percent efficiency and the 5548252-dt-content-rid-34812235 2/courses/201910HCA 38344279/Budgeting.pd 15. The revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practice's Medicare January, February, and March gross revenues if admission is $120 and the fee for a follow-up encounter is $60 (Exhibits 10-13e and 10-14a). the fee for an 16. The revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practice's commercial January. February, and March gross revenues if the fee for an admission is $150 and the fee for a follow-up encounter is S65 (Exhibits 10-13e and 10-14a). 17. The revenue budget: gross and net charges. What is the difference between gross charges and net charges? 18. The revenue budget: calculating net revenues. Calculate ZMG Hospitalist Practice's Medicare January, February, and March net revenues if the fee for an admission is $50 and the fee for a follow-up encounter is $70. Medicare receives a 40 percent discount. (Exhibits 10-13e and 10-14a). 0 19. The revenue budget: calculating net revenues. Calculate ZMG Hospitalist t, Practice's Medicaid/Selt-Pay January, February, and March net revenues if the fee for an admission is $50 and the fee for a follow-up encounter is $70. Medicaid receives a 70 percent discount. (Exhibits 10-13e and 10-14a). py n- 20. The labor budget: fixed and variable labor. What is the difference between a fixed and a variable labor budget? 21. The labor budget: calculating the fixed labor budget. Instead of the raises ted stated in Exhibit 10-16e, assume that all benefits are 13 percent and all raises ane 7 percent and calculate the fixed labor budget for January. February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not. of ted 22. The labor budget: calculating the fixed labor budget. Instead of the benefits the ibit stated in Exhibit 10-16e, assume that all benefits are 20 percent and all raises are 5 percent and calculate the fixed labor budget for January. February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not. om- ctice w-up 23. The labor budget: variable labor. In the variable labor budget, why is it neces- sary to determine how many RVUs can be handled by full-time employees? 24. The variable labor budget: direct and indirect time. In the variable labor budget, why is it necessary to consider efficiency? (Exhibit 10-17 tice 2-dt-content-rid 34812235 2/courses/2019101HCA38344279/Budgetingpdr odf 456 Budgeting Exhibit 10-16e Data used to construct ZMG Hospitalist Practice's fixed labor salaries and benefits Number AverageBase Benefit Date ofPercent of FTEs Salary Salary Percent Next Raise Raise 5% 220,000 1,760,000 15% Jul-02 5% 100,000 100,000 20% Nov-02 5% 100,000 100,000 20% Nov-02 5% 15% Feb-02 12 $200,000 $2.400.000 Physician I Physician Il Physician's Assistant Nurse Practitioner Administrative Director Office Staff Office Staff 5% 5% 5% 20% 50,000 50,000 25% 30,000, 90,000 25% Feb-02 Feb-02 Jun-02 100,000 100,000 1 3 All salaries and wages are paid twice monthly in equal amounts. The second payment is made on the last day of each month. Exhibit 10-16f How February's salaries and benefits for physician I category in Exhibits 10-16b through 10-16d were developed Annual Amount Source Item $200.000 5% A Annual base salary/month (Exhibit 10-16e) B Raise C Salary after raise D Benefits percentage E Benefits after raise F Salary and benefits Exhibit 10-16e) A x (1+8) $210,000 15% (Exhibit 10-16e) (C D) (C + B 31,500 $241,500 In calculating the hourly equivalent, estimates were made of both the number of hours that it takes for staff to "do" an RVU if they worked at 100 percent efficiency and the 5548252-dt-content-rid-34812235 2/courses/201910HCA 38344279/Budgeting.pd 15. The revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practice's Medicare January, February, and March gross revenues if admission is $120 and the fee for a follow-up encounter is $60 (Exhibits 10-13e and 10-14a). the fee for an 16. The revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practice's commercial January. February, and March gross revenues if the fee for an admission is $150 and the fee for a follow-up encounter is S65 (Exhibits 10-13e and 10-14a). 17. The revenue budget: gross and net charges. What is the difference between gross charges and net charges? 18. The revenue budget: calculating net revenues. Calculate ZMG Hospitalist Practice's Medicare January, February, and March net revenues if the fee for an admission is $50 and the fee for a follow-up encounter is $70. Medicare receives a 40 percent discount. (Exhibits 10-13e and 10-14a). 0 19. The revenue budget: calculating net revenues. Calculate ZMG Hospitalist t, Practice's Medicaid/Selt-Pay January, February, and March net revenues if the fee for an admission is $50 and the fee for a follow-up encounter is $70. Medicaid receives a 70 percent discount. (Exhibits 10-13e and 10-14a). py n- 20. The labor budget: fixed and variable labor. What is the difference between a fixed and a variable labor budget? 21. The labor budget: calculating the fixed labor budget. Instead of the raises ted stated in Exhibit 10-16e, assume that all benefits are 13 percent and all raises ane 7 percent and calculate the fixed labor budget for January. February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not. of ted 22. The labor budget: calculating the fixed labor budget. Instead of the benefits the ibit stated in Exhibit 10-16e, assume that all benefits are 20 percent and all raises are 5 percent and calculate the fixed labor budget for January. February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not. om- ctice w-up 23. The labor budget: variable labor. In the variable labor budget, why is it neces- sary to determine how many RVUs can be handled by full-time employees? 24. The variable labor budget: direct and indirect time. In the variable labor budget, why is it necessary to consider efficiency? (Exhibit 10-17 tice