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Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: 1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?

Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: 1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Revenue 2021 2020 2019 Inpatient stays Inpatient Revenue Revenue per stay Outpatient Procedures Outpatient Revenue Revenue per procedure Total Revenue Operating Expenses Inpatient Labor (fixed costs) Inpatient Supplies (variable costs) Total Inpatient Expenses Outpatient Labor (fixed costs) Outpatient Supplies (variable costs) Total Outpatient Expenses Total Operating Expenses Net Revenue Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: |1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?
Transcribed Image Text:Revenue 2021 2020 2019 Inpatient stays Inpatient Revenue Revenue per stay Outpatient Procedures Outpatient Revenue Revenue per procedure Total Revenue Operating Expenses Inpatient Labor (fixed costs) Inpatient Supplies (variable costs) Total Inpatient Expenses Outpatient Labor (fixed costs) Outpatient Supplies (variable costs) Total Outpatient Expenses Total Operating Expenses Net Revenue Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: |1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?
2020 Annualized Projection 2019 Budget to Actual Budget Current Month Jun20 Year To Date 2019 Inpatient Break Even Actual Budget Variance % Variance Actual Budget Variance % Variance Actual Budget Variance % Variance Actual Variance % Variance VC/stay $163.79 Revenue Price FC Inpatient stays Inpatient Revenue 31,320 21.8% $16,443,000 $14,250,000 2,820 $2,193,000 16.0% 2,400 $1,635,000 2,500 15,000 16.0% $525 34,800 21.8% $18,270,000 $15,000,000 2,900 400 17,400 30,000 4,800 $3,270,000 16.0% 28,500 9.9% 14,580,000 $1,522,500 $1,250,000 $272,500 21.8% $9,135,000 $7,500,000 15.4% $361.21 40,365 Outpatient Procedures Outpatient Revenue 1,250 1,000 250 25.0% 7,500 6,000 1,500 25.0% 15,000 12,000 3,000 25.0% 13,500 11,400 2,100 18.4% $293,750 $250,000 $43,750 17.5% $1,762,500 $1,500,000 $262,500 17.5% $3,525,000 $3,000,000 $525,000 17.5% $3,172,500 $2,850,000 $322,500 11.3% Total Revenue $1,816,250 $1,500,000 $316,250 21.1% $10,897,500 $9,000,000 $1,897,500 21.1% $21,795,000 $18,000,000 $3,795,000 21.1% $19,615,500 $17,100,000 $2,515,500 14.7% Operating Expenses Inpatient Labor (fixed costs) Inpatient Supplies (variable costs) Total Inpatient Expenses $1,225,000 $500,000 $1,725,000 $125,000 -$25,000 $100,000 $7,350,000 $750,000 10.2% $16,200,000 $14,700,000 -5.0% 10.2% $14,580,000 $13,965,000 $5,130,000 5.8% $19,710,000 $19,665,000 $1,350,000 $8,100,000 $1,500,000 $615,000 -$570,000 $45,000 10.2% 4.4% 2019 Outpatient Break Even -$150,000 $600,000 -$300,000 $1,200,000 $475,000 -5.0% $2,850,000 $3,000,000 $5,700,000 $6,000,000 -5.0% $5,700,000 -10.0% Price FC VC/stay $1,825,000 5.8% $10,950,000 $10,350,000 5.8% $21,900,000 $20,700,000 0.2% $235 1,485,000 $44.00 -$12,500 -$75,000 $30,000 -$45,000 -$150,000 $60,000 -$90.000 $1,485,000 Outpatient Labor (fixed costs) Outpatient Supplies (variable costs) $137,500 $55,000 -$225,000 $24,000 -$201,000 $150.000 $825,000 $900,000 $1,650,000 $1,800,000 $600,000 $2,400,000 -8.3% -8.3% -8.3% $1,710,000 -13.2% $191.00 7,775 $50,000 $330,000 $1,155,000 $300,000 $1,200,000 $660,000 $2,310,000 $570,000 $2,280,000 10.0% $5,000 -$7,500 $594,000 $2,079,000 10.0% 10.0% 4.2% Total Outpatient Expenses $192,500 $200,000 -3.8% -3.8% -3.8% -8.8% Total Operating Expenses $2,017,500 $1,925,000 $92,500 4.8% $12,105,000 $11,550,000 $555,000 4.8% $24,210,000 $23,100,000 $1,110,000 4.8% $21,789,000 $21,945,000 -$156,000 -0.7% Net Income/(Loss) -$201,250 -$425,000 $223,750 -52.6% -$1,207,500 -$2,550,000 $1,342,500 -52.6% -$2,415,000 -$5,100,000 $2,685,000 -52.6% -$2,173,500 -$4,845,000 $2,671,500 -55.1% Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: 1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?
Transcribed Image Text:2020 Annualized Projection 2019 Budget to Actual Budget Current Month Jun20 Year To Date 2019 Inpatient Break Even Actual Budget Variance % Variance Actual Budget Variance % Variance Actual Budget Variance % Variance Actual Variance % Variance VC/stay $163.79 Revenue Price FC Inpatient stays Inpatient Revenue 31,320 21.8% $16,443,000 $14,250,000 2,820 $2,193,000 16.0% 2,400 $1,635,000 2,500 15,000 16.0% $525 34,800 21.8% $18,270,000 $15,000,000 2,900 400 17,400 30,000 4,800 $3,270,000 16.0% 28,500 9.9% 14,580,000 $1,522,500 $1,250,000 $272,500 21.8% $9,135,000 $7,500,000 15.4% $361.21 40,365 Outpatient Procedures Outpatient Revenue 1,250 1,000 250 25.0% 7,500 6,000 1,500 25.0% 15,000 12,000 3,000 25.0% 13,500 11,400 2,100 18.4% $293,750 $250,000 $43,750 17.5% $1,762,500 $1,500,000 $262,500 17.5% $3,525,000 $3,000,000 $525,000 17.5% $3,172,500 $2,850,000 $322,500 11.3% Total Revenue $1,816,250 $1,500,000 $316,250 21.1% $10,897,500 $9,000,000 $1,897,500 21.1% $21,795,000 $18,000,000 $3,795,000 21.1% $19,615,500 $17,100,000 $2,515,500 14.7% Operating Expenses Inpatient Labor (fixed costs) Inpatient Supplies (variable costs) Total Inpatient Expenses $1,225,000 $500,000 $1,725,000 $125,000 -$25,000 $100,000 $7,350,000 $750,000 10.2% $16,200,000 $14,700,000 -5.0% 10.2% $14,580,000 $13,965,000 $5,130,000 5.8% $19,710,000 $19,665,000 $1,350,000 $8,100,000 $1,500,000 $615,000 -$570,000 $45,000 10.2% 4.4% 2019 Outpatient Break Even -$150,000 $600,000 -$300,000 $1,200,000 $475,000 -5.0% $2,850,000 $3,000,000 $5,700,000 $6,000,000 -5.0% $5,700,000 -10.0% Price FC VC/stay $1,825,000 5.8% $10,950,000 $10,350,000 5.8% $21,900,000 $20,700,000 0.2% $235 1,485,000 $44.00 -$12,500 -$75,000 $30,000 -$45,000 -$150,000 $60,000 -$90.000 $1,485,000 Outpatient Labor (fixed costs) Outpatient Supplies (variable costs) $137,500 $55,000 -$225,000 $24,000 -$201,000 $150.000 $825,000 $900,000 $1,650,000 $1,800,000 $600,000 $2,400,000 -8.3% -8.3% -8.3% $1,710,000 -13.2% $191.00 7,775 $50,000 $330,000 $1,155,000 $300,000 $1,200,000 $660,000 $2,310,000 $570,000 $2,280,000 10.0% $5,000 -$7,500 $594,000 $2,079,000 10.0% 10.0% 4.2% Total Outpatient Expenses $192,500 $200,000 -3.8% -3.8% -3.8% -8.8% Total Operating Expenses $2,017,500 $1,925,000 $92,500 4.8% $12,105,000 $11,550,000 $555,000 4.8% $24,210,000 $23,100,000 $1,110,000 4.8% $21,789,000 $21,945,000 -$156,000 -0.7% Net Income/(Loss) -$201,250 -$425,000 $223,750 -52.6% -$1,207,500 -$2,550,000 $1,342,500 -52.6% -$2,415,000 -$5,100,000 $2,685,000 -52.6% -$2,173,500 -$4,845,000 $2,671,500 -55.1% Review the attached budget report that includes current month, YTD, the annualized YTD projections, and the prior year actuals to use for trending purposes. Use the 2021 worksheet/tab to build a budget for 2021 based on the assumptions listed below. Include the 2020 & 2019 YTD Actual as well. Assumptions: 1) The # of stays or procedures will increase by 5% for both Inpatient days and Outpatient procedures 2) The revenue per stay or procedure will decrease by 1% 3) Both the labor & the supply costs will increase by 2% 4) What is the break even point for both inpatient and outpatient for the projected annualized 2020? For 2021?
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