The construction cost of the ASC is $225 per square foot. Equipment is 35%% of the construction cost. You are to create an original spreadsheet for the cash flow budget on a monthly basis for 36 months. You are to present the budget as if you were presenting to a group of potential investors.

ASSUMPTIONS:

2,000 square feet per OR.

6 ORs

Bad Debt 3%

FTEs 6 per 1,000 cases Salary $47,000 per FTE. Employee Benefits 20%.

Clinical supplies 10% of Net Revenue

Collections 30% of Billings

Net Revenue $3,000 per case

Purchased services $305000 per month

Management Fee 4% of Net Revenue

Malpractice $50,000 per year

Other Expense is 4% of net revenue

Janitorial $.29 per square foot per month

Utilities $.35per square foot per month

Lease payment is the sum of the monthly payment for the building financing and the equipment financing.

Building cost per square foot $225

Interest on building loan is 8.5% on a 10 year note.

Interest rate on the equipment is 9.5% for a 7 year note.

Equipment cost is 35% of the building cost.

Student determines the ramp up of the cases per month.

Maximum number of cases per OR 1000 per year