Budget
University of Phoenix Material
Patton-Fuller Community Hospital
Statement of Revenue and Expense
2009 to 2010 Operating Budget
Complete the Operating Budget. Assume the 2009 projections were realized. Use the 2009 budget and the 2010 budget assumptions to calculate expenses and income for 2010. The revenues have been completed for you.
2009 (Proj)
2010 Budgeted % Change From 2009 Projection
2010 Budget
2010 Operating Budget Assumptions
Revenue
Based on these 2009 assumptions: a 3% overall deflation rate for prices in 2009—due to the weak economy—will continue into 2010.
Net patient revenue
459,900
3%
473,697
Patient revenue will continue to increase, but at a decreased rate, with little or no increase in patient volume, due to new managed care contracts.
Other revenue
3,082
15%
3,544
Marketing's plan to increase donations by 15%
Total revenue
462,982
3%
477,241
2009 (Proj)
2010 Budgeted % Change From 2009 Projection
2010 Budget
2010 Operating Budget Assumptions
Expenses
Salaries and benefits
220,752
1%
Salaries will hold to a 1% overall increase in cost due to price deflation nationwide, with no increase in labor hours, due to no increase in patient volume. This assumption could be affected by a board decision either to raise nursing wages by $1 per hour or to increase the nursing hour ratio.
Supplies
74,584
-3%
Supplies cost will decrease 3% due to the price deflation and our current over-stock purchased last year.
Physician and professional fees
110,376
3%
Contracts for fees have a built-in 3% increase.
Utilities
1,200
5%
Utilities cost will increase to the rising cost of oil partially offset by the efficiency of the hospital's new heating and cooling systems.
Other
1,840
0%
No net change in the cost or volume of these items.
Depreciation & amortization (noncash expenses)
36,036
0%
Some high-cost equipment—air conditioning, telephone system, all
Patton-Fuller Community Hospital
Statement of Revenue and Expense
2009 to 2010 Operating Budget
Complete the Operating Budget. Assume the 2009 projections were realized. Use the 2009 budget and the 2010 budget assumptions to calculate expenses and income for 2010. The revenues have been completed for you.
2009 (Proj)
2010 Budgeted % Change From 2009 Projection
2010 Budget
2010 Operating Budget Assumptions
Revenue
Based on these 2009 assumptions: a 3% overall deflation rate for prices in 2009—due to the weak economy—will continue into 2010.
Net patient revenue
459,900
3%
473,697
Patient revenue will continue to increase, but at a decreased rate, with little or no increase in patient volume, due to new managed care contracts.
Other revenue
3,082
15%
3,544
Marketing's plan to increase donations by 15%
Total revenue
462,982
3%
477,241
2009 (Proj)
2010 Budgeted % Change From 2009 Projection
2010 Budget
2010 Operating Budget Assumptions
Expenses
Salaries and benefits
220,752
1%
Salaries will hold to a 1% overall increase in cost due to price deflation nationwide, with no increase in labor hours, due to no increase in patient volume. This assumption could be affected by a board decision either to raise nursing wages by $1 per hour or to increase the nursing hour ratio.
Supplies
74,584
-3%
Supplies cost will decrease 3% due to the price deflation and our current over-stock purchased last year.
Physician and professional fees
110,376
3%
Contracts for fees have a built-in 3% increase.
Utilities
1,200
5%
Utilities cost will increase to the rising cost of oil partially offset by the efficiency of the hospital's new heating and cooling systems.
Other
1,840
0%
No net change in the cost or volume of these items.
Depreciation & amortization (noncash expenses)
36,036
0%
Some high-cost equipment—air conditioning, telephone system, all