revenue questions 495397

Part 1 – Net Revenue per Patient

Using the Patient Cost Analysis Form in the Appendix from your “Revenue Management

Manual” text (Form A-26), calculate your current costs per patient using the following

information.

Total Number of Patients $16,245

Total Expenses $568,758

Fixed Expenses $389,600

Total Annual Revenue $1,090,800

o What is the Net Revenue per patient

Part 2 – Reviewing the Budget

Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family

Practice.pdf) as well as the Sample Operating Budget.

Compare the month of January to the Month of June.

Were these months over-budget or under-budget and why? As an office manager what do

you see that can be listed as issues in these months

Part 3 – Preparing a Budget for 2012

Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family

Practice.pdf). Make the following adjustments and share your results:

o Patient Revenue is expected to grow by 3% due to the signing of a new managed

care contract. What is the new dollar amount for patient revenue due to this

increase

o The cost of expenses is expected to increase to 1.5%. What is the new dollar amount

for the cost of expenses

o A new roof is needed which will cost $50,000. Prepare a new 12 month budget, in

MS Word or wordpad or MS Excel, which reflects the 3% growth in patient revenue,

the 1.5% in cost of expenses and the cost of the new roof.

Attachments:

family_practi….pdf

operating_bud….xls