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Internal Medicine Operating Budget [Growth]
Year 1 Year 2 Year 3 Year 4 Year 5
Projected Visit Growth 2200 6600 11000 15400 19800
Revenue
Fee for Service Revenue $ 242,000 $ 726,000 $ 1,210,000 $ 1,694,000 $ 2,178,000
Capitated Revenue $ 198,000 $ 594,000 $ 990,000 $ 1,386,000 $ 1,782,000
Revenue Adjustments $ (154,000) $ (462,000) $ (770,000) $ (1,078,000) $ (1,386,000)
TOTAL Revenue $ 286,000 $ 858,000 $ 1,430,000 $ 2,002,000 $ 2,574,000
Expenses
Physician Salary $ 175,000 $ 350,000 $ 525,000 $ 700,000 $ 875,000
Physician Fringe (23.5%) $ 41,125 $ 82,250 $ 123,375 $ 164,500 $ 205,625
Physician Assistant Salary $ 29,700 $ 59,400 $ 89,100 $ 118,800 $ 148,500
Physician Assistant Fringe (27.5%) $ 8,168 $ 16,335 $ 24,503 $ 32,670 $ 40,838
Registered Nurse Salary $ 15,000 $ 30,000 $ 45,000 $ 60,000 $ 75,000
Registered Nurse Fringe (27.5%) $ 4,125 $ 8,250 $ 12,375 $ 16,500 $ 20,625
Clinical Support Salary $ 38,000 $ 76,000 $ 114,000 $ 152,000 $ 190,000
Clinical Support Fringe (27.5%) $ 10,450 $ 20,900 $ 31,350 $ 41,800 $ 52,250
Business Support Salary $ - $ 40,000 $ 40,000 $ 80,000 $ 80,000
Business Support Fringe (27.5%) $ - $ 11,000 $ 11,000 $ 22,000 $ 22,000
Sub Total Salary Expense $ 321,568 $ 694,135 $ 1,015,703 $ 1,388,270 $ 1,709,838
Medical Supplies $ 4,080 $ 8,160 $ 12,240 $ 16,320 $ 20,400
Office Supplies $ 1,200 $ 2,400 $ 3,600 $ 4,800 $ 6,000
Parking [MDs] $ 8,400 $ 16,800 $ 25,200 $ 33,600 $ 42,000
Sub Total Other Expenses $ 13,680 $ 27,360 $ 41,040 $ 54,720 $ 68,400
TOTAL Expenses $ 335,248 $ 721,495 $ 1,056,743 $ 1,442,990 $ 1,778,238
NET GAIN/(LOSS) $ (49,248) $ 136,505 $ 373,258 $ 559,010 $ 795,763
Notes/Assumptions:
Revenue Adjustments include capitation and contractual adjustments, credentialing denial, free care, credit card expense, etc.
Use existing clinical space at no additional build-out cost.
Overhead costs covered in existing P&L.
POS patient has an average of 2 visits/year.
Medical & Office Supplies increase incrementally based on additional FTEs.
FTE Additions [per year]
1.00 MD
0.33 Physician Assistant
0.25 Registered Nurse
1.00 Clinical Support Assistant
1.00 Business Support Assistant [year 2 and 4].
Post Office Square
Internal Medicine CAPITAL Budget
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Clinical Equipment
Exam Table $ 1,700 $ 1,700 $ 1,700 $ 1,700 $ 1,700 $ 8,500
Scale $ 800 $ 800 $ 800 $ 800 $ 800 $ 4,000
Light Source $ 1,420 $ 1,420 $ 1,420 $ 1,420 $ 1,420 $ 7,100
Exam Room Wall Light $ 400 $ 400 $ 400 $ 400 $ 400 $ 2,000
Stool $ 380 $ 380 $ 380 $ 380 $ 380 $ 1,900
Chair $ 440 $ 440 $ 440 $ 440 $ 440 $ 2,200
Blood Pressure Wall Unit $ 200 $ 200 $ 200 $ 200 $ 200 $ 1,000
Needle Box Wall Unit $ 240 $ 240 $ 240 $ 240 $ 240 $ 1,200
Otoscope and holder $ 700 $ 700 $ 700 $ 700 $ 700 $ 3,500
IT Equipment $ - $ - $ - $ - $ - $ -
Ergotron Set-up $ 800 $ 800 $ 800 $ 800 $ 800 $ 4,000
Flat Panel Monitor $ 360 $ 360 $ 360 $ 360 $ 360 $ 1,800
PC $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 10,000
Inflation $ - $ 283 $ 292 $ 300 $ 309 $ 1,185
TOTAL COST $ 9,440 $ 9,723 $ 10,015 $ 10,315 $ 10,625 $ 48,385
* Assumes two exam rooms per MD and 3% inflation.](https://image.slidesharecdn.com/managerialaccountingfinalbudgetanalysisp2-124793265197-phpapp02/75/Managerial-Accounting-Final-Budget-Analysis-P2-1-2048.jpg)
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- 1. Post Office Square InternalMedicine Operating Budget [Growth] Year 1 Year 2 Year 3 Year 4 Year 5 Projected Visit Growth 2200 6600 11000 15400 19800 Revenue Fee for Service Revenue $ 242,000 $ 726,000 $ 1,210,000 $ 1,694,000 $ 2,178,000 Capitated Revenue $ 198,000 $ 594,000 $ 990,000 $ 1,386,000 $ 1,782,000 Revenue Adjustments $ (154,000) $ (462,000) $ (770,000) $ (1,078,000) $ (1,386,000) TOTAL Revenue $ 286,000 $ 858,000 $ 1,430,000 $ 2,002,000 $ 2,574,000 Expenses Physician Salary $ 175,000 $ 350,000 $ 525,000 $ 700,000 $ 875,000 Physician Fringe (23.5%) $ 41,125 $ 82,250 $ 123,375 $ 164,500 $ 205,625 Physician Assistant Salary $ 29,700 $ 59,400 $ 89,100 $ 118,800 $ 148,500 Physician Assistant Fringe (27.5%) $ 8,168 $ 16,335 $ 24,503 $ 32,670 $ 40,838 Registered Nurse Salary $ 15,000 $ 30,000 $ 45,000 $ 60,000 $ 75,000 Registered Nurse Fringe (27.5%) $ 4,125 $ 8,250 $ 12,375 $ 16,500 $ 20,625 Clinical Support Salary $ 38,000 $ 76,000 $ 114,000 $ 152,000 $ 190,000 Clinical Support Fringe (27.5%) $ 10,450 $ 20,900 $ 31,350 $ 41,800 $ 52,250 Business Support Salary $ - $ 40,000 $ 40,000 $ 80,000 $ 80,000 Business Support Fringe (27.5%) $ - $ 11,000 $ 11,000 $ 22,000 $ 22,000 Sub Total Salary Expense $ 321,568 $ 694,135 $ 1,015,703 $ 1,388,270 $ 1,709,838 Medical Supplies $ 4,080 $ 8,160 $ 12,240 $ 16,320 $ 20,400 Office Supplies $ 1,200 $ 2,400 $ 3,600 $ 4,800 $ 6,000 Parking [MDs] $ 8,400 $ 16,800 $ 25,200 $ 33,600 $ 42,000 Sub Total Other Expenses $ 13,680 $ 27,360 $ 41,040 $ 54,720 $ 68,400 TOTAL Expenses $ 335,248 $ 721,495 $ 1,056,743 $ 1,442,990 $ 1,778,238 NET GAIN/(LOSS) $ (49,248) $ 136,505 $ 373,258 $ 559,010 $ 795,763 Notes/Assumptions: Revenue Adjustments include capitation and contractual adjustments, credentialing denial, free care, credit card expense, etc. Use existing clinical space at no additional build-out cost. Overhead costs covered in existing P&L. POS patient has an average of 2 visits/year. Medical & Office Supplies increase incrementally based on additional FTEs. FTE Additions [per year] 1.00 MD 0.33 Physician Assistant 0.25 Registered Nurse 1.00 Clinical Support Assistant 1.00 Business Support Assistant [year 2 and 4]. Post Office Square Internal Medicine CAPITAL Budget Year 1 Year 2 Year 3 Year 4 Year 5 Total Clinical Equipment Exam Table $ 1,700 $ 1,700 $ 1,700 $ 1,700 $ 1,700 $ 8,500 Scale $ 800 $ 800 $ 800 $ 800 $ 800 $ 4,000 Light Source $ 1,420 $ 1,420 $ 1,420 $ 1,420 $ 1,420 $ 7,100 Exam Room Wall Light $ 400 $ 400 $ 400 $ 400 $ 400 $ 2,000 Stool $ 380 $ 380 $ 380 $ 380 $ 380 $ 1,900 Chair $ 440 $ 440 $ 440 $ 440 $ 440 $ 2,200 Blood Pressure Wall Unit $ 200 $ 200 $ 200 $ 200 $ 200 $ 1,000 Needle Box Wall Unit $ 240 $ 240 $ 240 $ 240 $ 240 $ 1,200 Otoscope and holder $ 700 $ 700 $ 700 $ 700 $ 700 $ 3,500 IT Equipment $ - $ - $ - $ - $ - $ - Ergotron Set-up $ 800 $ 800 $ 800 $ 800 $ 800 $ 4,000 Flat Panel Monitor $ 360 $ 360 $ 360 $ 360 $ 360 $ 1,800 PC $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 10,000 Inflation $ - $ 283 $ 292 $ 300 $ 309 $ 1,185 TOTAL COST $ 9,440 $ 9,723 $ 10,015 $ 10,315 $ 10,625 $ 48,385 * Assumes two exam rooms per MD and 3% inflation.