You are an Executive Director of a large healthcare system.One of your clinic entities (ABC) has submitted to you their most recent income statement for review.Upon review of the financial statement you notice a number of variances and concerning issues with the statement.Explain your analysis of the report and any questions.The questions should include the details of your concerns.

Monthly Departmental Budget Variance Report For The Period Ending August 31, 2018 Aug-18 Actual Current Month - August Budget Year To Date - August Aug-18 Actual Aug-18 Actual Actual Number Aug-17 Annual Actual Per Unit Actual Budget SUMMARY INFORMATION 5,165 (317) 3,862 8006505 WRVUs 9,410 9,174 6,879 57,05 3,194 8006510 Unbilled Work RVUs 8007000 Productivity Volumes Keystat 5,862 1, 036 35,476 39 8300006 Employment Exams 8.363 198 15.036 .029 12,435 3,316 2.650 0.36 0.29 3,706 2.776 0.44 (389) 0.33 (126) 2,912 2.298 8006500 Clinic Encounters 8006520 Appointments Kept 0.37 0.29 6,574 4,913 D.44 (298) 5,119 40,899 30.770 Revenue 199,698 54.41 402,186 48.09 97,512 46.20 569,484 126.73 1,196,377 45.95 89,392 143.06 (32,487) 181.14 65,025 1,125,081 Other Patient Revenue 142.58 191.16 3,057,462 129,45 Total Patient Revenue 12,923,649 179.16 2,838,616 188.78 218,846 1,994,727 17,060,258 352,506 784,991 1,597,645 33,371 Contractual adjustments 20,405 12.967 16,743 Charity 12,480 214,127 20,103 (7,623) 16,850 23,067 33,371 765,231 83.32 13,816 773,065 35,590 2.44 569,946 31.29 25,171 215,030 ,367,180 21,774 20,038 963,280 ,224,251 10,587 5,156 5,431 1,368 11,693 10,311 84.48 1,382 775,818 778,220 6,93 61,867 93.06 571,314 Total Revenues 1,398,911 81.97 91.61 21,420 970,213 191,959 Operating Expenses 23.18 21.73 :0,389 2.22 27,667 3.31 23,257 356,889 23.73 2,200,868 7,277 5.51 Physician benefits 48,743 55,604 3.70 50,606 47,974 5.74 2.632 45,081 APP salaries (6,861) 51,644 392,617 89,140 13,865 10,586 1.15 10,184 1.22 402 10,043 APP benefits 19,488 1.30 185,488 1,473 18,657 20.20 74,586 20.88 0,902 151,210 349,727 114,589 10.49 22.15 16,694 271,741 6.140 Employee benefit 83,682 515,929 7.60 46,775 5.59 23,001 37,926 Pharmaceuticals 110,563 77,043 5.12 33,520 59,870 26,262 535,387 2.86 24,415 2.92 1.847 48,368 2.83 54,521 3.63 (6,152) 37,318 287,01 63,480 59,825 Rents, utilities, & other occupancy co: 31,236 831,659 22,977 2.50 15,551 1.86 7,426 8,033 49,275 2.89 15,539 2.07 1.69 Purchased services 31,095 (0.07) 16.098 Purchased services - System 31,667 18,180 9,501 1 86 215,090 (1,124) (0.07) 13,153 (7,217 0.70 1,381 7,136 Purchased services - Corporate 9.007 11,121 12,663 8,044 0.88 17,827 2.13 (9,783) 7,486 Other direct expenses 64,600 17,373 1.02 26,423 1.76 (9,050) 12,061 119,766 735,836 80.12 685,026 81.92 563,917 Total Operating Expenses 1,414,769 82.90 86.07 120,577 1,002,208 39,982 4.35 93,194 11.14 7,398 (0.93) 83,300 5.54 (99,157) (31,995)Monthly Departmental Budget Variance Report Monthly Departmental Budget Variance Report CLINIC ABC CLINIC ABC For The Period Ending August 31, 2018 For The Period Ending August 31, 2018 Current Month - August ar To Date - Auld Current Month - August Actual Aug-18 ear To Date - Budg Annual Actual Aug-18 Per Unit t Per Unit Variance ADaily Account Per Unit Variance Budget Actual Per Unit Per Unit Variance Actual Number Staffing Information Account Description Per Uni er Unit Variance Actual 614 Total Paid FIES Total Worked Hou 54.55 50.72 52.17 OP TAIL INFORMATION 108,820 ss Drug Revenue 1.09 3:061 Total Paid Hours 19,325 1.13 17: 969 Laboratory Revenue TEs Total Outpatient Revenue 52.00 48.53 3.47 FTEs-Productive Evaluation & Mgmt Revenue 45.50 FTEs-Non Productive 50.07 $1.66 Total FTEs 50.72 Oce Med Revenue 56.33 4.68 54.55 Medicine Revenue 15.64 5.27 35.97 Employee FT APPTTE 43.96 4.60 19.43 50 72 1,196,37 32,487) 788,737 absent Retail Sales Total Other Patient Revenue 2.273,363 1,425,24 4.68 tal Paid FTEs by Job Class 1,598,563 191.16 1.125,081 Total Patient Revenue 3,057 ,462 2,838,616 185.78 17,060,258 3. . 9 . . . ... Medicaid 190.361 Openford Health Plan Managed Care / Commercial Other Discounts 31. 464 E . . . ..... 8,406.851 382530 D Work Comp 93.87 67 ,515 Total Contractual adjustments 1,597,645 1,400,129 8,406,851 38,371 12.967 16.743 $90000 Charitable Disco Total Charity 58,783 3.44 35, 716 214, 127 13,451 9,839 (12 989) 791100 Bad Debt Recover 32,487 373,96 6 Total Bad debt 13 , 816 15,030 765,231 (FEB'D) 59,946 Net Patient Revenue 1,387,218 81.29 1,367,180 8,224,251 009 asso00 Other Operating 21,000 59000 Re 10,392 Total Other operating revenue 1 693 10.371 61,867 75,818 84.48 778.220 93.06 ( 2,402 ) 571,314 Total Revenues 1,398,911 81.97 91.61 21,420 970,213 8,286,118 194, 295 23.23 Expenses "" 481,857 VIZ'LSE 205,721 Hasto Phys Comp On Accr Res 714320 Phy 27- 300 Total Physician salaries DO FICA Phy 370.901 200 Group Health Insurance Physician 20 Dental Physician 40 LTD Physician so Physician Lam For Total Physician benefits 712320 APP Salary Allocation Total AT 72100 FICA APE oup Health cup Like AP. 72800 40 tal APP benefits Productive Salary -Overtime 1120 Non Productive Salary 7:1320 Em Premium Salary Total Employee salaries Do Group Health Insurance Emp 20 Dental Employee LTD Employee COSTIKHOSH EmPIO 721820 Loan Forgiveness and BINS Ama 74000 Ph Total Employee benefits tal Pharmaceuticals Medical Sup to Sutures Impla 1030 fv SolutionsSupply Med Suppices Supplies Office & Admin Sur Thor Equi ents & Minor Retail Products uppliesMonthly Departmental Budget Variance Report Monthly Departmental Budget Variance Report CLINIC ABC CLINIC ABC For The Period Ending August 31, 2018 For The Period Ending August 31, 2018 Year To Date - August ear To Date - August Current Month - August Current Month - August Aug-18 Actual Aug-18 Budg ug-17 Annual Aug-18 Aug-18 Budge Aug-17 Account Aug-18 Actua Aug-18 Budge Aug-17 Annual Aug-18 Budge Budget Per Unit ug-17 Account Actual Budget Actua Actual Actual Per Unit Aug-18 Variance Actual Number Account Description Per Unit Budget Per Unit Variance Actual Per Unit budget Per Unit Variance Actual Number Account Description Actual Per Unit Budget SR .868 8 8 8 28. .8. 8989558 756020 Patient Education Materials Variance Paid Hours 9,793 37,318 9711110 Hours_Productive 24 2618 Total Supplies 1,970 0.82 26,262 25,39 48,368 3,252 761000 Electricity 2.83 395 9711115 Hours_Productive_Of 9711120 Hours_Nonproductive 8 8 8 1,02 1497 762000 Facility Fuel D.17 1,464 1,73 9,414 763000 Telephone 2.954 9711320 Hours_Employee Salary Allocation 173 763400 Cable TV 384 0.02 ( 130 ) 9713100 Hours Physician 2,120 0. 12 1,356 15,301 108,820 764000 Water & Sewer 412 0.02 $28 8,061 Total Paid Hours 9.325 1.13 765000 Disposal Service 781100 Rental Space 16:302 0.09 59,825 Total Rents, utilities, & other occupal 131,236 7.69 127 ,886 120.414 431,659 771010 Maintain Satire 771020 MaintRepair Grounds 5,316 0.31 2,167 35 Contracted Biomed Services 3.007 Service Contracts 15,627 15,418 8,009 5,033 776000 Other Purchased Services 14.769 Total Purchased services 9,275 19,351 777000 Purchased Services - Sanford Health 1,137 19,766 777012 Purchased Services-Provider 1,306 rchased services - System 77145 Central Services- HS Op Srves 1,667 6,699 777160 Central Services-Ent Clinic Services 777600 Printing Allocation Total Purchased services - Corporate 9,007 4.530 781200 Equip Lease & Rental Certificates / Licenses / Fees 782000 Certificates, Licenses, and Dues 783100 Education & Training 783200 CME 783300 Travel pongo putney meeting Meals 1,732 31.950 784100 Freight/Postage 85020 Employee Relation 1,452 0.09 11.166 787000 Advertising-Media 575 6,000 787200 Advertising-Promotional Items 7486 789000 Other Expenses 1.02 119,766 (9.78 2.791 1 Other direct expenses 17,373 792300 Depreciation - Buildings 9.829 26,423 11,277 5,581 83,552 9.872 Do Depreciation - Leasehold Improvements 20 841 Total Depreciation 9,39 19.654 329 12,630 00 Depreciation - Major Moveable 30,725 4, 19 25,29 110,326 63,91 Total Operating Expenses ,414,769 002,20 194,207 015,114 39,982 (53,213) 7,398 Income from Operations (15,858) $3,300 (99 , 157 ) (31,995) 271,004