The University of Hospital is a 175 bed community hospital serving a rural area of Pennsylvania It is located 30 miles from a large metropolitan area and has a fine reputation The hospital is fully accredited and is licensed by the state The hospital offers general medical surgical services with a bed complement as follows Medical Surgical130 Pediatrics20 ICCU10 OB15 Total175 The hospital has a 10 bed Ambulatory Surgical Unit The hospital is in sound financial condition with a physical plant that is 15 years old and in excellent condition The hospital has just recruited a new General Surgeon and a Internist These recruitment efforts filled two major needs of the institution It is estimated that in today's current marketplace surgeons are expected to increase inpatient admissions to a acute care community hospital by 1 5 and Internists by 5 It is expected that admission volumes will increase with the addition of these two new physicians The community population has been relatively stable over the past 10 years and there is no expectation that this trend will change The percentage breakdown of patients by payor mix is as follows Medicare51 Blue Cross16 Medical Asst08 HMO10 Commercial INS07 Other05 Self Pay03 Total100 The population breakdown is as follows Under 1925 19 to 6444 65 and over31 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 Establish a separate distinct 15 bed inpatient psychiatric unit 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 Recruit a general surgeon and a Internist Purchase an additional CT scanner which is expected to increase current radiology volumes by 3 25 THREE DEPARTMENTS ARE INVOLVED IN OUR BUDGET EXERCISE 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 Describe the mission, assumptions and objectives for the upcoming budget year for the departments involved (Nursing, Laboratory, Pharmacy Radiology) Establish statistics volume projections for the budget year 2015 for all four (4) departments Establish a position control plan for the new Psychiatric Unit (Part of Nursing) Establish a position control plan for nursing and laboratory Complete expense item for laboratory radiology for 2015 Project the expected net revenue for all Medicare, HMO, and all Other Insurance patients Be sure to explain all work in detail

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The University of Hospital is a 175-bed community hospital serving a rural area of Pennsylvania.It is located 30 miles from a large metropolitan area and

The University of Hospital is a 175-bed community hospital serving a rural area of Pennsylvania.It is located 30 miles from a large metropolitan area and has a fine reputation.

The hospital is fully accredited and is licensed by the state.The hospital offers general medical/surgical services with a bed complement as follows:

Medical/Surgical130

Pediatrics20

ICCU10

OB15

Total175

The hospital has a 10 bed Ambulatory Surgical Unit.The hospital is in sound financial condition with a physical plant that is 15 years old and in excellent condition.

The hospital has just recruited a new General Surgeon and a Internist.These recruitment efforts filled two major needs of the institution. It is estimated that in today's current marketplace surgeons are expected to increase inpatient admissions to a acute care community hospital by 1.5% and Internists by .5%.

It is expected that admission volumes will increase with the addition of these two new physicians.

The community population has been relatively stable over the past 10 years and there is no expectation that this trend will change.

The percentage breakdown of patients by payor mix is as follows:

Medicare51%

Blue Cross16%

Medical Asst08%

HMO10%

Commercial INS07%

Other05%

Self Pay03%

Total100%

The population breakdown is as follows:

Under 1925%

19 to 6444%

65 and over31%

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:

Establish a separate distinct 15-bed inpatient psychiatric unit.
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.
Recruit a general surgeon and a Internist.
Purchase an additional CT scanner which is expected to increase current radiology volumes by 3.25%.

THREE DEPARTMENTS ARE INVOLVED IN OUR BUDGET EXERCISE.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:

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

Be sure to explain all work in detail!!