You are a hospital department manager responsible for managing the budget for the hospital's health information management service. Using the salary, wage and fringe benefit data found in the attached Excel spreadsheet, adjust your budget to reflect the changes described below.  

What would be the dollar impact if the 5% increase planned for January 1 (halfway through the July-June fiscal year) were reduced to 3.5% and postponed until April 1?

 

Original Budget Director Compliance Specialist Registries Coordinator Base Case: 5% Increase that takes effect on January 1, (halfway through the July-June Fiscal Year) Base Hourly Reduction % Time Elapsed Current Rate 50% Coder A Coder B Evening Shift Coder Billing Compliance Specialist Release of Information Specialist Secretary Medical Transcriptionist A Question 1 Medical Transcriptionist B Evening Shift Transcriptionist Release of Information Support Clerk Registration Specialist Certified Documentation Improvement Specialist Health Record Specialist II Heatlh Record Specialist I Totals Wages and salaries Fringe benefits @ 29% Summary Personnel Costs Current Base (July 1) 76,000 44,000 43,500 38,000 39,000 32,000 36,000 39,000 26,500 36,000 37,000 33,500 21,000 37,000 40,000 26,800 24,480 629,780 645,524.5 187,202.105 July through January 38,000 22,000 21,750 19,000 19,500 16,000 18,000 19,500 13,250 18,000 18,500 16,750 10,500 18,500 20,000 13,400 12,240 314,890 % Increase 5% January 1, 5% Increase 3,800 2,200 2,175 1,900 1,950 1,600 1,800 1,950 1,325 1,800 1,850 1,675 1,050 1,850 2,000 1,340 1,224 31,489 New Base 79,800 46,200 45,675 39.900 40,950 33,600 37,800 40,950 27,825 37,800 38,850 35,175 22,050 38,850 42,000 28,140 25,704 661,269 % Time Remaining New Rate 50% January through June 39,900 23,100 22,837.5 19,950 20,475 16,800 18,900 20,475 13,912.5 18,900 19,425 17,587.5 11,025 19,425 21,000 14,070 12,852 330,635 Total for Fiscal Year 77,900 45,100 44,588 38,950 39,975 32,800 36,900 39,975 27,163 36,900 37,925 34,338 21,525 37,925 41,000 27,470 25,092 645,525