HSA6175 Financial Management of Health Systems Case 1 Brookside Hospital:

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Payer Mix and Reimbursement is as follows:

Budget Assumptions for 2018:

·        Volume increase is expected to be 10% with the same procedure mix

·        Due to volume increase, all three expenses are expected to increase 10%, in addition:

·        Labor rates are expected to increase 5% due to merit increases

·        The cost of Imaging materials are expected to increase 6%

·        Overhead rate is expected to stay the same

Required:

Prepare a professional document to present to the VP of Radiology which will include separate tables for each of the following:

1.     Prepare a statistics budget summary by procedure and payer

2.     Prepare a gross and net revenue worksheet by procedure and payer. Hint: prepare a table for each procedure and then one for the total of all procedures.

3.     Prepare an expense worksheet based on the volume increases and the rate increases for each of the three types of expenses.


Do not separate the expenses by procedure only by type of expense.


4.

Prepare a summary income statement for

overall

revenues and expenses.


Include appropriate header.

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