1- Critique the budget in its present form: Is the budget reflective of growth o
ID: 2810015 • Letter: 1
Question
1- Critique the budget in its present form:
Is the budget reflective of growth or decline?
2- What assumptions can you make when you change the numbers to reflect a:
1-Decrease in Medicare reimbursement.
2-Increase in uninsured patients
What happens to your revenue, indicate with your budget numbers.
FS - 3 STATEMENT OF REVENUE & EXPENSE
OPERATING REVENUE
Inpatient Revenue 8,863,564
Outpatient Revenue 33,264,750
Total Patient Services Revenue 42,128,314
DEDUCTIONS FROM REVENUE
Provision For Bad Debts 1,045,138
Contractual Adjustments 16,773,755
Charity & Uncompensated Care 330,959
Other Adj. & Allowances
Total Deductions From Revenue 18,149,852
Net Patient Service Revenue 23,978,462
OTHER OPERATING REVENUE
Other Operating Revenue 374,001
Tax Revenues 1,529,300
Total Other Operating Rev 1,903,301
Total Operating Revenue 25,881,763
OPERATING EXPENSES
Salaries and Wages 12,744,100
Employee Benefits 3,362,225
Professional Fees 2,017,583
Supplies 1,636,806
Purch Srv - Utilities 458,959
Purch Srv - Other 2,631,970
Depreciation 1,953,519
Rentals/Leases
Insurance 244,935
License & Taxes
Interest
Other Direct Expense 809,321
Total Operating Expenses 25,859,418
Net Operating Revenue 22,345
Non Operating Rev Net of Exp 94,002
Net Rev. Before Items Listed Below 116,347
Extraordinary Items
Federal Income Taxes
Net Revenue or (Expense) 116,347
Explanation / Answer
Firstly the question is not clearly scarted , im answering to that in the way that you can solve with what i explained you
1. budgets are always prepared in way that there will we growth ,,,it is first assumpion made during the budget preparation..and the entity may make necessary actions to acheive such growth
2.increase in uninsured patients and decrease in medicare claims does effect the company a lot because the fee charged will not be reimbursed by the insurer- it decrease the income of the entity
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