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As the administrator of your Hospital, you have just presented your 2012 hospita

ID: 2698781 • Letter: A

Question

As the administrator of your Hospital, you have just presented your 2012 hospital budget to your Board of trustees: Operating budget $525,000,000; Total expenses: $492,000,000; Net income: $33,000,000. Statistics budget: 2012 inpatient discharges: 65,625; no outpatient volume.


QUESTION: Thirty days after presenting the budget, you learn that the revenue budget is overstated by $30 million due to significant payment reductions. How many additional discharges would you need to maintain total revenue at the budgeted level?

Explanation / Answer

actual revenue is 525000000

total patients = 65625

revenue per patient = 525000000/65625 = 8000

Net defecit = 30,000,000

To get 30,000,000 => more 30,000,000 / 8,000 = 3750 additional discharges