Description
You are a staff member in the finance department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
Complete the following:
- Prepare next year’s financial plan and operational budget.
Note: Use the budget attached; it did not take into account the growth of the new facility. The CEO has asked that you expand that budget and provide a finalized budget that will take into account the new services offered. The CEO has stated that there is $3 million that you can incorporate in to the budget for additional staffing, services, maintenance, and so forth.
20XX
| KRONA HOSPITAL OPERATING BUDGET FOR 20XX | ||||||
| Revenues | ||||||
| Inpatient | $ 25,000,000 | |||||
| Outpatient | 15,000,000 | |||||
| Emergency Room | 10,000,000 | |||||
| Laboratory | 5,000,000 | |||||
| Pharmacy | 1,500,000 | |||||
| Home Health and Hospice | 1,500,000 | |||||
| Ambulance Services | 950,000 | |||||
| Substance Abuse | 250,000 | |||||
| Other | 850,000 | |||||
| Subtotal | $ 60,050,000 | |||||
| Less Chartiy Care | 18,000,000 | |||||
| Net Revenues | $ 42,050,000 | |||||
| Expenses | ||||||
| Payroll (including nursing salaries) | $ 12,500,000 | |||||
| Benefits | 3,000,000 | |||||
| Contract Labor | 100,000 | |||||
| Insurance | 300,000 | |||||
| General Services (laundary, security, etc) | 3,000,000 | |||||
| Depreciation | 1,500,000 | |||||
| Interest Expense | 300,000 | |||||
| Professional Services | 10,000,000 | |||||
| Total Operating Expenses | $ 30,700,000 | |||||
| Net Income | $ 11,350,000 | |||||