The primary initiative or goal for the 2014-2015 fiscal year is the establishment of a 15-bed Psychiatric Unit. This new unit will be infused into the current bed complement with no increase in the 175 bed count expected. This unit is expected to occupy space for 15 beds currently not set up and staffed at the hospital.

It is expected that during the year there will be a slight increase in inpatient services as a result of the Psychiatric Unit.The hospital laboratory is buying two new pieces of equipment at a cost of $400,000 that will allow them to do 35% more tests in house rather than send these tests out to a reference lab. It is also expected that the Radiology Department is purchasing a new CT scanner that is expected to increase current radiology volumes by 3.25%.

The budget calendar and target dates for budget completion are the same in this year's budget as in years past.

In the new fiscal year, the hospital plans to:

1. Establish a separate distinct 15-bed inpatient psychiatric unit.
2. Install new equipment in the laboratory to enable the hospital to do 35% more tests in-house rather than send them to a reference lab.
3. Recruit a general surgeon and a Internist.
4. Purchase an additional CT scanner which is expected to increase current radiology volumes by 3.25%.

THREE DEPARTMENTS ARE INVOLVED IN OUR BUDGET.THEY ARE NURSING, LABORATORY, PHARMACY AND OUTPATIENT/AMBULATORY SERVICES.

STATISTICAL DATA

2012201320142015

Admissions In Pt (Nursing)7,3957,4007,370

Laboratory Test399,330411,810421,564

Pharmacy Rx99,832100,01199,642

Radiology Exams68,22269,12468,950

Laboratory spent $79,866 on supplies in 2012.They spent $86,480 in 2013 and $96,959 in 2014.These figures represent the cost of supplies to do tests at the hospital. The hospital spent $122,000 to perform tests outside the hospital last year.The cost of lab supplies is expected to increase 10% in the next budget year as a result of inflation. The hospital also had supplies costs in Radiology of $ 395,205 in 2012, $405,222 in 2013 and 410,100 in 2014. There is expected to be an industry wide increase in radiology supplies costs of 6.5% in the next budget year.

LABORATORYEXPENSES

201220132014

Supplies$79,866$86,480$96,959

RADIOLOGY EXPENSES

Supplies$395,205$405,222$410,100

NURSING JOB CLASSIFICATION LISTING

POSITION TITLEAUTHORIZED POSITIONS

Director of Nursing1 ft

Assistant Director2 ft

Nurse Supervisors4 ft

Head Nurse8 ft

Staff Nurses RN80 ft

15 pt

LPN25 ft

10 pt

Nurses Aides10 ft

Orderlies6 ft

Unit Desk Clerks6 ft

4 pt

Secretary1 ft

LABORATORY

Department Head1 ft

Med Technologist12 ft

2 pt

Lab Tech4 ft

Lab Assistant2 ft

Secretary1 ft

PARIENT REVENUE

Gross Revenue Projected for the 2014-2015 budget year is as follows:

In Patient$30,675,000

Out Patient$36,878,000

Total$67,553,000

Current Reimbursement Formulas:

In PatientOut Patient

Medicare$5760/case38% of Charge

HMO$1215.00/pat day31% of Charge

Other Insurance$7655.00/discharge42.5% of Charge

Expected length of stay (LOS) in 2015 is 3.4

INSTRUCTIONS:

1. Describe the mission, assumptions and objectives for the upcoming budget year for the departments involved. (Nursing, Laboratory, Pharmacy & Radiology)
2. Establish statistics volume projections for the budget year 2015 for all four (4) departments.
3. Establish a position control plan for the new Psychiatric Unit. (Part of Nursing)
4. Establish a position control plan for nursing and laboratory.
5. Complete expense item for laboratory & radiology for 2015.
6. Project the expected net revenue for all Medicare, HMO, and all Other Insurance patients.