Revenue:

Net patient Service Revenue                                                     37,597,200
Other Revenue                                                                              1,100,000
Total operating revenues                                                           38,697,200

Expenses:
Nursing services                                                                     5,556,645
Other professional services                                                14,485,980
General services                                                                     3,538,560
Support Services                                                                     9,178,140
Depreciation                                                                           1,900,000
Amortization                                                                           50,000
Interest                                                                                    325,000
Provision for doubtful accounts                                         1,500,000

Total expenses                                                                      36,534,325
Income from Operations                                                     2,162,875
Nonoperating Gains (losses)
Unrestricted gifts and memorials                                        20,000
Interest income                                                                      80,000
Nonoperating gains, Net                                                      100,000

Revenue and Gains in Excess of Expenses and losses                    2,262,875

2. Use the “Checklist for Building a Budget” (Exhibit 16-2) and critique your own budget

1. What is the proposed volume for the new budget period?

2. What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship?

3. What will the appropriate dollar cost be?

3a. Forecast service-related workload.

3b. Forecast non-service-related workload.

3c. Forecast special project workload if applicable.  

3d. Coordinate assumptions for proportionate share of interdepartmental projects.

4. Will additional resources be available?

5. Will this budget accomplish the appropriate managerial objectives for the organization?