Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The hospital has to cut operating expenses by 5 percent for next fiscal year 2019.Last year 2018, for the entire hospital, we assumed that we

image text in transcribed
The hospital has to cut operating expenses by 5 percent for next fiscal year 2019.Last year 2018, for the entire hospital, we assumed that we would see $1.2 billion in total patient revenue. But as you can see, for half the year, we've only hit just over $607 million. By this point in the year, we should be over $612 million. So already in terms of total patient revenue, we've got a deficit of nearly $5 million that we didn't expect. The problem is made worse when we see that other operating revenue is also under budget by $1.5 million. Hoping for 5% bump on the revenue side for FY 19. Implementation is obviously by June 30 since the next fiscal year starts July 1 Per operating room Employee salary and wages: $421,820 Taxes and benefits: $96,670 Occupancy costs: $129,090 Medical and surgical: $401,430 Other medical costs: $28,420 Insurance: $14,860 General & administrative: $325,840 Total operating expenses: $1,418,130 Provides the revenue and expenses through the current month of the current year. Pick any month to be the current month Estimates the revenue and expenses for the rest of the current fiscal year based on the assumptions provided in the transcript documents. Prepares a budget for the next fiscal year. "assume" the medical-surgical dept makes up a certain % of hospital's total revenue, and then proceed to input expenses for the rest of FY18 The hospital has to cut operating expenses by 5 percent for next fiscal year 2019.Last year 2018, for the entire hospital, we assumed that we would see $1.2 billion in total patient revenue. But as you can see, for half the year, we've only hit just over $607 million. By this point in the year, we should be over $612 million. So already in terms of total patient revenue, we've got a deficit of nearly $5 million that we didn't expect. The problem is made worse when we see that other operating revenue is also under budget by $1.5 million. Hoping for 5% bump on the revenue side for FY 19. Implementation is obviously by June 30 since the next fiscal year starts July 1 Per operating room Employee salary and wages: $421,820 Taxes and benefits: $96,670 Occupancy costs: $129,090 Medical and surgical: $401,430 Other medical costs: $28,420 Insurance: $14,860 General & administrative: $325,840 Total operating expenses: $1,418,130 Provides the revenue and expenses through the current month of the current year. Pick any month to be the current month Estimates the revenue and expenses for the rest of the current fiscal year based on the assumptions provided in the transcript documents. Prepares a budget for the next fiscal year. "assume" the medical-surgical dept makes up a certain % of hospital's total revenue, and then proceed to input expenses for the rest of FY18

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

10th Edition

9353166527, 978-9353166526

More Books

Students also viewed these Finance questions