Preparing a Budget for the Small Hospital

8/10/2019 Preparing a Budget for the Small Hospital

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2/27

Prepar ing

a Budget fo r

t h e

Smal l

Hosp i t a l

Prepared

f o r

U ON

499

Honors Thes i s

by

J an i c e L uerger

Col lege

o f

Advanced

Techn ica l Stud ies

Southern

I l l i n o i s Unive r s i t y

25 March 1991

\

\


3/27

Pr e pa r i ng a Budget f o r t he

Small

Hosp i t a l

Execut ive

Summary

Team

work

shou ld be u t i l i z e d in

deve lop ing

an

annual

f i n a n c i a l

budge t .

The

p r o J e c t i o n o f

t he

f i n a n c i a l

ou t look

f o r

each

depar tmen t

can

u s u a l l y be made

by

depar tmen t

heads

s i n c e

t he y a r e

r e s p o n s i b l e fo r the d a i l y

o p e ra t io n

o f t h e i r u n i t .

Thei r involvement normal ly produces

l e s s

v ar i an ces from t h e bUdget

These

fo r e c a s t s ,

a f t e r i npu t

and

c a r e f u l s c r u t i n y

by

t h e

a d m i n i s t r a t i o n ,

can

provide

impor tan t i n f o r m a t ion in

deve lop ing

an

o v e r a l l f i n a n c i a l

budget

f o r t he

h o s p i t a l .

budget

s

a

formal

w r i t t en s t a t ement o f a

h o s p i t a l s

p la n

f o r t he

fu t u r e . The f i n a n c i a l

budget

i s

a management

c o n t r o l

to o l normal ly c ove r ing

a one year

p er io d . The

e s s e n t i a l s

o f budge t ing a r e to s e t s p e c i f i c

goa l s f o r

f u t u r e

o p e r a t i o n s and

to

have a p e r i o d i c compar ison o f

a c t u a l

r e s u l t s

wi th

t he

f i n a n c i a l

goa l s e s t a b l i s h e d .

Many

t ype s

o f budge ts

can be

used , bu t

t h r e e which a r e

impor tan t

to

any h o s p i t a l a r e t he o p era t in g budge t , c a p i t a l

budget

and t h e

cash budge t .


4/27

CKNOWLEDGEMENT

I want

to

thank Mr. J e r ry

Hickam

a

h ea l th

ca re

p ro fe s s i o n a l f o r

t e a c h i ng

me

h i s

methods i n p r e pa r i ng a budge t .

e has

t au g h t

me t h a t e x c e l l e n t

r e s u l t s

can

i ndeed be

ach ieved

by

t h e pr ude n t and c o n s i s t e n t m oni to r ing

o f

t h e budge t .


5/27

TABLE OF CONTENTS

PREPARING A BUDGET FOR THE SMALL HOSPITAL

INTRODUCTION

STATISTICAL BUDGET 2

EXAMPLES

EXPENSE

BUDGET

3

REVENUE

BUDGET

4

OPERATING BUDGET 6

CAPITAL

BUDGET

6

CASH

BUDGET

8

FINANCIAL

STATEMENTS

9

CONCLUSION

10

FLOW

CHART

12

DEPARTMENTAL HISTORY SHEET 13

SALARY

BUDGET

WORKSHEETS

14

SALARY

SUMMARY

BUDGET

WORKSHEETS

16

SUPPLIES &

EXPENSE AND

TOTAL

EXPENSE WORKSHEET

18

STATEMENT OF REVENUES AND EXPENSES 19

THREE YEAR

CAPITAL BUDGET

20

BLANCE

SHEET 21

REFERENCES 22
http:///reader/full/%E5%AE%AE...%E5%AE%95........%E5%AE%AE%E5%AE%AE....%E5%AE%AE%E5%80%80http:///reader/full/%E5%AE%AE...............%E5%80%80http:///reader/full/%E5%AE%AE............................%E5%80%80http:///reader/full/%E5%AE%AE...%E5%AE%95........%E5%AE%AE%E5%AE%AE....%E5%AE%AE%E5%80%80http:///reader/full/%E5%AE%AE...............%E5%80%80http:///reader/full/%E5%AE%AE............................%E5%80%80


6/27

P r e pa r ing

BUdget

f o r

t h e

Small

Hospi t a l

I n t r o d u c t i o n

The

a b i l i t y o f smal l

h o s p i t a l s t o

su rv iv e l a r g e l y

depends

on

e x t e r n a l

f a c t o r s such

a s s t a t e and f ed e ra l

h e a l t h c a r e l e g i s l a t i o n and

i n t e rn a l

f a c t o r s such

a s

t h e

p r e p a r a t i o n o f su cces s fu l f i n a n c i a l

budge t

The

f oc us

o

t h i s

r e p o r t

i s

t he

p r e p a r a t i o n

o f

t h e

smal l

h o s p i t a l

f i n a n c i a l budge t

Develop ing f i n a n c i a l budge t i s pr oc e ss t h a t shou ld

use team work to

plan

and implement if

it

i s to

be

e f f e c t i v e

The

budget s e t s pe r i m e t e r s f o r management to

fo l low

th r oughou t

t h e

ye a r

a l l owing t h e managers to r e p o r t v ar i an ces whi le

prov id ing guidance s o v a r i a n c e s are

ma in ta in e d

a t

a

minimum and a dJus t e d when

p o s s i b l e

By

us ing

ll depar tmen t

managers in t h e

planning

pr oc e ss

of

t h e

budge t

t h e

ad mi n i s t r a t o r is

a b l e

to deve lop

e f f e c t i v e

s t r a t e g i e s

because a l l

depar tments

a r e i n v es t ed in t h e g o a l s This

e l i mi n a t e s

many

prob lems

a s s o c i a t e d wi th t h e

budget

and

i d e n t i f i e s a r e a s t h a t need improvement

As r e s u l t of c om pe t i t i on d e c l i n i n g marg ins and

o t h e r

economic

p r e s s u r e s , a d m i n i s t r a t o r s

are

t a k i n g

se v e r a l s t ep s t o contro l c o s t s and

i n c r e a s e revenues .


7/27

The

budget

pr oc e ss

i s one

of t he

b e s t

t o o l s

known

to

do

J u s t

t h a t . The

o b Jec t iv es o f

a

budget

a r e :

to

provide

w ri t t en t e rms o f

t he h o s p i t a l

goa l s

* to

prov ide a

b a s i s f o r

t h e

ev a lu a t io n of

f i n a n c i a l

per formance

accord ing

to t h e p l a ns

*To

provide

a t o o l to c o n t r o l c o s t s

*To c r e a t e c o s t awareness h o sp i t a l wide

S t a t i s t i c a l Budget

The first s t e p i n p r e pa r i ng an

ope r a t i ng

budget

i s

to

pr e pa r e

t he statistical

budge t .

The

obJe c t i ve

is

to

pr ov ide a measure of a c t i v i t y in

each

depar tmen t f o r

t he

upcoming

budget

pe r i od .

D i a g n o s t i c departments measure

how

many

procedures

w i l l be prov ided f o r t he upcoming ye a r ,

whi le nur s ing e s t i m a t e s

t he

number o f p a t i e n t

days

a n t i c i p a t e d .

Knowlege

of

t he

p a s t

per formance

o f a f a c i l i t y is

use f u l

in t h e

fo recas t i n g .

The l a s t f r i v e

ye a r s

is an a p p r o p r i a t e

amount

of h i s t o r y

to

keep on file This e na b l e s

management

to

p la n fo r f u t u r e o p e r a t i o n s . Compar isons of p a s t

per formance

with

c u r r e n t o p e ra t io n s

may

i n d i c a t e

f a vo r a b l e

and

unfavorab le t r en d s .

For

example ,

it

i s

very h e lp fu l

to rev iew t he p a s t

h i s t o r y

o f f u l l

t ime eq u iv e l en t s FTEs)

f o r each depar tmen t

in a

h o s p i t a l .

This e na b l e s management


8/27

to

s e t

g o a l s

to

lower

o v e r t i m e ,

s i c k

t ime ,

e t c .

t e na b l e s

management

to m a in t a in FTEs to wi th in t h e budget .

Depar tments should be

r e que s t e d to e s t i m a t e t h e

volume o f t h e i r a c t i v i ty bu t t h e

f i n a n c i a l managers

shou ld

have

t h e

f i n a l

c o n t ro l .

T hi s i s impor tan t because

depar tment

managers may t e nd t o o v e r s t a t e

volume

and t h i s c ou ld be

d e v a s t a t i n g

when t h e budge t is no t met.

However, t h e

depar tments should be i nvo lve d because

t op

management

t ends

to be t o o c o n se r v a t i v e .

Each

depar tment has

t h e i r own s e t o f v a r i a b l e s

to

examine

p r i o r

t o f o r e c a s t i n g . Kay

v a r i a b l e s

t o examine a r e

p a t i e n t days

and o u t p a t i e n t

v i s i t s . Managers

should

look

a t

t h e census per month ove r t h e

p a s t few ye a r s

t o

p r o J e c t

t h e

number o f p s t i e n t

~ y

expec ted

i n t h e fu t u r e .

Equal

visits

o v e r

t w e l v e months

cannot be assumed.

S e a s o n a l ,

weekly and d a i l y p a t t e r n s

should

be

r ev iewed .

For example ,

Chr is tmas i s u su a l ly a s low

t ime

o f

t h e

ye a r

so you

would

probably budget

fewer p a t i e n t days in December

t ha n in

maybe J une .

Other

a r e a s o f concern may i nvo lve

a

phys i c i a n

p la nn ing

to

r e t i r e

which would

a f f e c t

a dm is s ions

and

p a t i e n t volume.


9/27

4

Expense Budget

This

is

t h e second s t e p in pr e pa r ing an ope r a t i ng

budge t .

Af t e r

t h e

statistical budge t

is

pr e pa r e d ,

each

depar tmen t

can

then

p r e pa r e

t h e i r

expense

budge t . The

expense budget is t h e

amount

of money

each

depar tmen t

e xpe c t s to p a y o u t .

These e x p e n s e s inc lude s a l a r i e s ,

s u p p l i e s ,

and o t h e r

va r i ous expenses . These

a r e t he

d o l l a r s

t he

d e p a r t me n t s

must

s t a y

wi t h i n .

* S a l a r i e s

t

i s

a good

idea

to

g i v e

each

depar tmen t

manager

a

wor kshee t

wi th each o f t h e i r employees

l i s t e d

with

t h e i r

a nn i ve r sa r y d a t e ,

p r e s e n t

hour ly

pay

and number of

hours

s c h e d u l e d to work. The depar tmen t manager can t hen make

c o r r e c t i o n s

a s n e c e s s a r y . They can

a l s o

look a t a pay

s c a l e and

de c ide

what i n c reases t he employee w i l l

g e t

a t

t h e i r

a nn i ve r sa r y d a t e .

This is a l so

a good t ime to budge t

f o r va c a nc i e s and make all c o r r e c t i o n s .

Suppl ies

Input f rom t h e depar tmen t heads a r e ne c e s s a r y if t h e r e

w i l l

be

p r i c e i n c r e a s e s

f rom

t he

vendors

and what

pe r c e n t a ge

the

p r i c e s w i l l i n c r e a se . f expenses go up

t he

r evenue

budge t

shou ld

i n c r e a s e p r o p o r t i o n a t e l y .


10/27

5

Revenue Budget

The

r evenue

budge t

is

a o r e c a s t

o t h e income

a

h o s p i t a l ex p ec t s

to r ece iv e or

t h e

budge t

p er i o d .

The

n o t - o r p r o i t n a t u r e o t h e h ea l t h

ca re

i n d u s t r y demands

t h a t r evenue be r e l a t e d

to

budge ted ex p en ses .

(C lever l ey ,

1986,

p . 2 6 3 ) .

The

p rep a ra t i o n

o

t h e

r evenue budge t

e n t a i l s t h e

p ro J ec t i o n o p a t i e n t s e r v i c e revenues ,

o t h e r o p e r a t i n g

r e v e n u e s

8nd non-operat ing revenues . T o t a l

p a t i e n t

s e r v i c e

r evenues a re c a l c u l a t e d

by

mu l t i p l y i n g t h e

expec ted

s e r v i c e volume

in

each r evenue c e n t e r by t h e charge

per

u n i t

o f

s e r v i c e .

(Ci rn

G e l l a t l y ,

1988 p .

101) .

You

w i l l need to d e c i d e

what

p er cen t ag e

o p r i c e

in c reas e w i l l

be needed to

produce

t h e

bot tom l i n e

you d e s i r e .

t i s

a

good i dea to

p r i n t

what

t h e r e s u l t s

would be a t

each

p er cen t ag e

to

g e t a

t r u e p i c t u r e . The p e rc e n t a g e l e v e l

dec ided upon needs to be enorced on all charges . For

example , i X-Ray 's

t o t a l a n c i l l a r y

c h a rg e s

or

every

procedure

oered eq u a l s 5550 ,000 and you d e c i d e on

a

1 ~

cha rge

i n c r e a s e ,

t h e n

t h e

5500 ,000

w i l l

have

to

i n c rea s e

to

5550 ,000 .

You

can

e i t h e r i n c rea s e each procedure by 1 ~

o r i n c r e a s e some and

d e c r e a s e o t h e r s .

J u s t

be

s u re t h e

bot tom

l i n e

i s i n c r eased

by 1 ~ Thi s is impor tan t

t h a t


11/27

6

Other

o p e r a t i n g

revenue

p ro Jec t io n s shou ld be c ons i de r e d .

Examples

a r e , d i e t a r y s a l e s

f rom

lunches so ld to employees

and

s i l v e r s a l e s from o l d x - r a y f i lms .

Non-opera t ing r evenues would i nc lude co n t r i b u t i o n s and

i n t e r e s t from i nves tment s . C ontr ibut ions

are

somet imes

d i f f i c u l t to

p r o J e c t whi le i n t e r e s t on

inves tments a r e

an

im por t a n t p a r t

o f t h e

non- ope r a t i ng r e ve nue s .

Opera t ing Budget

The

o p era t in g budget is composed of t he expense

budge t and r evenue

budge t .

It lists, fo r t he upcoming

f i s c a l

ye a r ,

a n t i c i p a t e d

income by sou r c e , and

a n t i c i p a t e d

expenses by

na

t u r a l

c l a s s i i c a t i o n ....

such

a s

s a l a r i e s ,

s u p p l i e s ,

and

utilities.

Adm i n i s t r a t i on

should

a lways

pur sue a l a r g e r revenue budget than expense budge t ,

t h e r e f o r e

p ro Jec t in g a p r o f i t on

t h e

bottom

l i n e .

The

p r o f i t

is used

to

f i na nc e t h e c a p i t a l

budge t .

Cap i t a l Budget

The

c a p i t a l budget

summarizes f u t u r e plans f o r

a c q u i s i t i o n s o f p l a n t facilities and eqUipment .

'The

average

U.S. h o s p i t a l i n c r e a s e s

its inves tment

in n e t

pr ope r t y by 9.3%

per y ea r .

CBKD 1990, p.ll. A h o s p i t a l

must de te rmine how much

o f its

c a p i t a l

p lan

to devote to


12/27

7

r e n o v a t i o n s

and expansion p ro Jec t s .

(Bent ivegna &

Calwe l l ,

1990,

p .

44-50) .

Management a l s o

has to

examine

t h e h o s p i t a l ' s o p e r a t i n g per formance and

c u r r e n t f i n a n c i a l

s t a t u s

to

se e whe the r

fu tu re

f i n a n c i n g

s

needed .

* I d e n t i f y your c a p i t a l

needs .

Each

depar tment shou ld be g iven

a

c a p i t a l budget worksheet

and

g u i d e l i n e s

to l st t h e i r

c a p i t a l

budge t

i t ems .

A

500

minimum

d o l l a r

amount

per

i t em

o r

1000

pe r

group

o f

i t ems

is

r e a s o n a b l e . Othe r wise you

w i l l c l u t t e r your f i x ed

equipment a p p r a i s a l r e p o r t .

*R egard ing

f i n a n c i a l

a l l o c a t i o n s , p r i o r i t i z e

t h e

equipment

d e s i r e d based upon

need

and money a v a i l a b l e f o r

purchas ing

o r

l e a s i n g .

L i s t URGENT,

ESSENTIAL,

ECONOMICALLY

DESIRABLE,

and

GENERALLY

DESIRABLE.

*Managing c a p i t a l needs .

The equipment

can

be purchased only a f t e r approva l o f

t h e

budge t ,

bu t no t

a l l

a t

one

t ime . For

example ,

you

cou ld

rev iew

t h e c a p i t a l budge t

on a q u a r t e r l y

b a s i s

and compare

cash

f low

s t a t em en t s t o your c a p i t a l budge t . Only

spend

on

a

q u a r t e r l y b a s i s , so you have an even spend ing fo r

p u r c h a s e s .

*Example:

A

f a c i l i t y has

a

200,000 c a p i t a l budge t :

200,000

d i v i d e d

by

4

q u a r t e r s

=

$50,000

e x p e n d i t u r e s

per


13/27

8

q u a r t e r . I you need a p iece o equipment t h a t

c o s t s

S75,OOO

t h e purchase cou ld be made, but dur ing t h e

ne x t

q u a r t e r

t h e t o t a l

e xpe nd i t u r e s

a l lowed

would

only

be

S25,OOO.

Cash Budget

Without

cash

a

h o s p i t a l

c a nno t s u rv i v e . This s t h e

pr imary r eason or a cash budge t . Because

o

t h e

many

changing re imbursement

r a t e s

rom

Medicare ,

Medicaid

and

He a l th Maintenance

Or ga n i z a t i ons

HMOs), p r e d i c t i n g

cash

low

r e q u i r e s a l o t

o

t hough t and

p l a nn i ng .

Cash

low

should be

r ev iewed

on

a

monthly b a s i s

to

e na b l e

ad mi n i s t r a t i o n to

or e se e cash sh o r t ag es and

s e e k p o s s i b l e ina nc ing i

n e c e s s a r y . The

cash

low s t a t e m e n t s

b a s i c a l l y i n d i c a t e the

d ie r e nc e in

t h e

ba l a nc e

s h e e t

a c c oun t s .

The

r e a d e r

s hou ld

ocus on how

t h e

de b t s be ing

used. For

example,

i

t h e

h o s p i t a l

shows

operat ing

l o s s e s ,

working c a p i t a l i n c r e a s e s ,

and

i n c r e a s e s

in

c a p i t a l

ex p en d i tu re s . t h e unds w i l l

pr oba b ly have been ge ne r a t e d by

long- te rm

o r s h o r t - t e r m

bor rowing . The cash

low

s t a t emen t

he l p s

de t e r m ine

how

de b t s

being used by

t h e h o s p i t a l .

Fin an c ia l managers should make s u r e they

do

n o t

spend

t oo

much

t ime

on de c i d i ng how

to g e t caah

r a t h e r

t ha n

how

to i n v e s t and

manage

what t he y have . Higher

i n t e r e s t

r a t e s w i l l

a l s o

g e n e r a t e e x t r a unds .


14/27

9

F i n a n c i a l

Sta tementa

F i n a n c i a l

s t a t e m e n t s a r e

a

summary o f

f i n a n c i a l

r e s u l t s . The

f i n a n c i a l

s t a t e m e n t s pr e pa r e d a t t h e end o f

each month a re :

*Sta temen t o f

r evenues and expenses

budgeted and a c t u a l

*Balance s h ee t

The

s t a t e m e n t o f r evenues

and

e xpe nd i t u r e s

-

budgeted and a c t u a l , shows t h e r evenue r ecognized dur ing

t h e

pe r i od

and t h e expenses

i nc u r r e d

dur ing

t h e

p e r io d .

Each r evenue

and expense

s hou ld be

compared

to t h e

pr oJe c t e d

budge t . Th is

r e p o r t shows t h e r e s u l t s o f t h e h o s p i t a l

o p era t io n by r e f l e c t i n g a p r o f i t or l o s s on t h e

bottom

l i n e .

This

i s a l s o known as t h e Income s t a t emen t .

The ba l a nc e sh ee t

i n d i c a t e s

t h e h o s p i ta l s

f i n a n c i a l

p o s i t i o n . The a s s e t s ,

liabilities

and

c a p i t a l o f

th e

f a c i l i t y is

r e p o r t e d .

The

e qua t i on

is a s fo l lows: Asse ts

=

L i a b i l i t i e s + C a p i t a l . The

a s s e t s

a r e

l i s t e d

as c u r r e n t

and

non- c u r r e n t

in

t h e or de r o f

t h e i r

l i q u i d i t y .

Current

a s s e t s

are expected to be consumed in one year and n o n - c u r r e n t o v e r

a l onge r t i me p er io d .

The

liabilities

a re a l s o l i s t e d as

c u r r e n t

and non-current . The c a p i t a l s ec t i o n

w i l l be

l ab e l ed fund ba lance

in

t h e c a s e o f a n o t - f o r p r o f i t

o r g a n i z a t i o n .


15/27

10

Conclus ion

The

f o r m u la t i on of

a

re listic

budge t

is

a

key

to

t he

e f f i c i e n t

o p e r a t i o n o f any

h o s p i t a l

and is e s p e c i a l l y

critic l

to t h e s u r v i v a l of t he smal l

h o s p i t a l .

S t a f f

e f f i c i e n c y r e s u l t s

in

a l e v e l o f high q u a l i t y c a r e

which

in

r e t u r n r e s u l t s in f i n a n c i a l suc c e s s f o r t h e h o s p i t a l .

Budgets

he lp accompl i sh

t h i s because t h e budge t

pr oc e s s

and

f i n a n c i a l s t a t e m e n t s i d e n t i f y pr ob lems

d e f i n e

a r e a s f o r

improvement ,

and

c onc u r r e n t l y a l low a d m i n i s t r a t o r s and

s u p e r v i s o r s

to

ma in ta in

and r e i n f o r c e e x c e l l e n c e . Recogn i t ion

and

r e i n f o r c e m e n t shou ld be g iven to depar tmen t employees f o r

ou t s t a nd i ng pe r f o r mance in

pr ov id ing q u a l i t y

s e r v i c e

and

in

s t a y i ng wi t h i n

t h e i r

f o r e c a s t e d budge t .

Without

a

teamwork

approach t h e a d m i n i s t ra t o r

may

f i n d t h e g u i d e l i n e s w i l l n o t

be met because t h e depar tmen t s a r e

not

i nve s t e d i n

s t a y i n g

wi th in

t h e i r

bUdget . Consequen t ly t h e a d m i n i s t r a t o r may

be

l ook ing f o r a no t he r Job .

Plann ing and t im e ly p r e p a r a t i o n a r e

a l s o key components .

o

no t

wa i t

u n t i l two weeks

be f o r e a

budge t

is

due to

pr e pa r e one.

Minimal ly a coup le o f months

a r e

needed . As

depar tmen t

heads

ga in

budge t ing e xpe r i e nc e

t hey shou ld

be

mot iva ted

to

make

bUdgeta ry

p lann ing

an

ongoing

fu n c t io n .

T h i s w i l l

r e i n f o r c e

t he

impor t ance

o f t h e i r r o l e

in

p r o v i d i n g t i m e l y i n f o r m a t ion to

t he

a d m i n i s t r a t i o n

and

t h e i r s u b o r d i n a t e s .


16/27

11

The u l t i m a t e

r e s p o n s i b i l i t y

o f f o r e c a s t i n g re listic

budge t

r e s t s

wi th

t he

h o s p i t a l a d m i n i s t r a t i o n .

Sound

a c c oun t ing p r a c t i c e s knowledge o f s e r v i c e s prov ided by

o t h e r

a r e a

h o s p i t a l s

and t he

impac t o f c o n t i n u a l l y

chang ing

l e g i s l a t i o n r g ~ r i n g mandated s e r v i c e s . are i mp e r a t i v e

f a c t o r s in

p ro Jec t in g budge t .


17/27

12

Prepar ing

a Budget

fo r

t h e

Small Hosp i t a l

Flow Char t

"

1

Expense

Budget

S t a t i s t i c a l

Budget

Revenue

,

Budg

e t

Cap i t a l

Budget

_ o.

Opera t ing

r

Budget

Cash

Budget

L.--J-- - - - r: .

Financ i a l

S ta temen

t s '

, -


18/27

13

HOSPITAL

DEPARTMENTAL HISTORY SHEET

DEPT

RADIOLOGY

DEPT

*I

===============================================================

DESCRIPTION

1988A 1989A

l '390P 19918

======================================================

SERVICE

STATISTICS:

IY lpat ieYl ts 3 4 5 0 3243

341'+

3550

UltrasolJ,Yld Inpt

45

89

158 215

CT ScaYls

Il".pt

70

155

170

OlJtpat

i e n t s

5350

5874 5594

5700

U trasollYld Ollt pt 240 250

2 8 3

300

CT Scar,s

OlJtpt 82

171

1

Mamfl1og'r 'aphy 154 2 7 3

275

TOTAL

9085

9752 10158

10400

======================================================

RATIO INCR


19/27

HOSPITAL

14

DE

PT. RAD I OLOGY

NO

62E,

SALARY

BUDGET WORKSHEET

========================================================================

DATE ADJUSTED

NX

SCH CURRENT MONTHLY

DIFF.

EMPLOYEE

NAME

HIRE DATE H

REVIEW

HRL Y R

HRS. RATE

========================================================================

SECRETARY APR

1

81

6.

12

1

EA

TECH

OCT

12 85

7

.- e::.-

C-..J

4

TECH APR

10 84

7

- , e

:: ..J

lEA

TECH ADE

FEB

2

76 7.01

164

DI RECTOR

JUN

'.

74 1 0 . 2 0 174

TOTAL

HRS

670

==========

F T E 3 . 8 5

=========


20/27

15

HOSPITAL

DEPT. RADIOLOGY

NO

525

VAC.

DIFF O T AND

STAND-BY

BUDGET WORKSHEET

=============================================

VAC

=============================================

J TITLE

NO

PEa

NO

WKS

WK

RATE

AN

COST

o

o

o

TOTAL

o

=========

STAND

BY

====================================

NO.PEO. NO WKS WK

RATE AN

COST

====================================

o

o

o

TOTAL

18000

=========

DIFF

====================================

BI-WK. HRHR RATE BI-WK CSTAN. COST

=========::::==========================

o

(>

o

o

o

o

o

o

TOTAL

o

(I

o

TOH lL

==::::::::::::::::=::::::::::


21/27

---------------------------------------------------------------------------------------------------------------------

HOSPITAL

DEPT

RADIOLOGY

ND

626

SALARY

S U ~ R Y BUDGET

WORKSHEET

============= ==============================================================================================================

~ P O Y

JULY

AUG SEPT

OCT

NOV

DEC

JAN

FEB

MARCH

APRIL

MAY

JUNE

TOTA

========= ====== ===========================================================================================================

SECRETARY 1010 1010

1010

1010 1010

1010

1010

1010 1010 1050

1050

1050

1224

TECH 30

30

30

32 32

32

32

32 32

32 32

32

37

TECH 1302 1302

1302

1302

1302

1302 1302

1302

1302 1366 1366

1366

1581

TECH ADE

1159 1159

1159

1159

1159 1159 1159 1210 1210

1210

1210

1210

1416

DIRECTOR

1917 1917 1917

1917

1917 1917

1917

1917

1917 1917 1917

2045

2313

TOTAL

5419 36 5419 36 5419 36 5421 12 5421 12 5421 12 5421 12 5471 96 5471 96 5575 28 5575 28 5702 3065739 34

=====================================================================================================================


22/27

HOSPITAL

7

DEPT RADIOLOGY

NO

626

SALARY

S U ~ ~ A R Y BUDGET WORKSHEET

========================================================================================================= ====================

DESCRIPTION

JULY

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

APRIL

MAY

JUNE

========= ===== ================= ====== =============================== ====================================================

OTHER 5419 3 5419 36 5419 36 5421 12 5421 12 5421 12 5421 12 5471 96 5471 96

5575 28

5575 28 5702 306

CALL BACH

1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00 1500 00

VAG

DIFF

D

T

52 00 52 00 52 00 52 00 52 00

52 00

52 00

52 00 52 00 52 00

52 00

57 00

TOTALS

6971 36 6971 36 6971 36 6973 12 6973 12

6973 12

6973 12 7023 96 7023 96

7127 28

7127 28 7259 308

=============================================================================================================


23/27

--------------------------------------------------------------------------------------------------------------

HOSPITAL

DEPT.

RADIOLOGY

NO.

626

SUPPLIES &EXPENSE

AND

TOTAL EXPENSE BUDGET

WORKSHEET

=======================================================

ITEM NO 3 4

5 6

7 8 9 10

11

12 13 14

DESCR

I

PTI

ACCT

JULY

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MARCH

APRIL

MAY

JUNE

T

================================================================================================================================

SCANS 626.80

7500.00 7500.00

7500.00

9145.00 9145.00

9145.00 9145.00

9145.00

9145.00

9145.00 9145.00

9HO.00

1

SALARIES-

626.01

6971.36

6971.36

6971.36

6973.12 6973.

12

6973.12

6973. 12 7023.

7023.%

7127.28 7127.28

7259.308

NUCL MED 626.60 950.00 950.00

950.00

950.00 950.00 950.00 950.00 950.00 950.00

950.00

950.00

950.00

1

FILM 626.50

2500.00

2500.00

2500.00 2500.00

2500.00 2500.00 2500.00

2500.00

2500.00

2500.00

2500.00

2500.00 3

MAMMOGRA 626.30

1333.00 1333.00

1333.00

1333.00 1333.00

1333.00

1333.00

1333.00 1333.00 1333.00 1333.00 1337.00 1

SPECIALIS 626. 10 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00

300.00

300.00

300.00

SUPPLIES

626.20 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00 2250.00

2250.00 2250.00 2250.00 2

TRAVEL & 626.40

100.00

100.00

100.00 100.00 100.00

100.00 100.00

100.00 100.00

100.00

100.00

100.00

EQUIP LEA

626. 70 1658.00 1658.00 1658.00

1658.00

1658.00

1658.00

1658.00

1658.00 1658.00

1658.00

1658.00

1662.00 1

TOTALS

23562.3623562.3623562.3625209.1225209.12

25209.12

25209.12 25259.96

25259.96 25363.28 25363.28

25498.30 2

================================================================================ ============================


24/27

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

19

HOSPITAL

STATEMENT OF

REVENUES

AND

EXPENSES

PERIOD

JULV

I, 1991 THRU

JUNE 30, 1992

CONSOLIDATED

Hmaud

ited)

Beneral

.atient

days

S.ecial

care

patient days

Total

Nursing Home

Patient

Days

Operating revenues:

Nursing dietary and room services

Ancillary

inpatient services

Ancillary

outpatient services

Clinical services

Bross

patient

revenues

Less:

r ~ o l l e c t i l e

accounts

Contractural

differentials

Clinical .riteoffs

Total deductions from revenue

Net patient

service revenues

Ooerating expenses:

Nursing services

Ancillary

services

General

services

Clinical services

Total exoenses

Total profit

or

loss

Other revenues and expenses:

Contributions

Other

revenues

Deoreciation expense

Total

other

Net

profit

or

-loss

Projected

Increase

Current Vear

Budget Decrease Ratio

6,963

6,963 o

0.00

577

577

o

0.00

6,726

6,726 o

0.00

========================

20,940

20,940 o

0.00

=== ======================================

2,498,865 2,613,345

114480

3,015,478

3,209,818

194340

2,376,223

2,622,024

245801

355,951 214,500 -141451

8,246,517

8,659,687

413170

184,824 195,000 1 m

2,376,118 2,668,200 292082

100,996 77,200

-23796

2,661,938

2,940,400 278462

5,584,579 5,719,287

134708

1,714,435

1,803,796

89361

1,263,198

1,349,561

86363

2,200,093 2,271,418

71325

218,233

149,169

-129064

5,455,959 5,573,944

117985

128,620 145,343 16723

439,765

461,000

21235

200,236

199,450 -7&6

277,400

279,600

2200

362,601 380,850

18249

491 221

526,

193

34972

4.58

6.44

10.34

-39.

74

5.01

5.51

12.29

-23.56

10.46

2.41

5.21

6.

B

3.24

-46.39

2.16

13.00

4,83

-0.39

0.79

5.03

7.12

=====;:===========;:=========;:===========


25/27

20

HOSPITAL

THREE

YEAR

CAPITAL

BUDGET

FISCAL

YEARS ENDING JUNE 30 1991-1993

DEPARTMENT

Nurs ing s e r v i c e

m e d i c a l / s u r g i c a l

S o e c i a l

c a r e u n i t

Emer 'geY'lcy roorn

Operat ing room, r e c o v e r y room,

and

8Ylest hes i a

Labo

a to y

R a d i o l o g y

Pharmacy

P h y s i c a l t h e r a o y

Med

i

ca 1

ecor

ds

Di e t a , y

Operat ion o f

plant

and maintenance

Housekeep ing and laundry

Busi r ,ess

O f f i c e

A d m i n i s t r a t i o n

and

Data P r o c e s s i n g

TOTAL

SOURCE OF FUNDS:

Deorec ia t ion expense

L e ss : P r i n c i p a l payments

WOt kiY lg

c a p i t a l

P r e - f i t s

TOTAL

1991

1992

1 9 ~ 3

::::::=======

======== ========

11

150

4

6 5 0

I)

1 , 0 0 0 8

0 0 0

3 ,

000 3

000

0

7 ,500 2 ,

500 2 , 8 0 0

3 9 , 9 4 5

20 000

( I

920

0

0

40 500 0

0

3 35 ,000

3 0 , 0 0 0

2 0 , 0 0 0

700 i ~ O O

3 0 , 0 0 0

5 5 0

0

0

5 , 9 0 0

14 ,300

5 ,785

155 877

4 5 , 0 0 0

780

.

u

180

7 4 2 , 2 8 7

========

279 500

110 ,000

159 500

tOO,OOO

4 0 0 , 0 0 0

(>

0

(>

(>

875 0

7,400

2 2 , 8 0 0

(>

0

200

500

1 ,0 0 0

1 , 0 0 0

1 5 0 , 0 0 0 1 5 0 , 0 0 0

2 2 7 ,9 2 5 2 2 7 , 1 0 0

========

279 500 27 3 ,600

lI tO

0 0 0

150 ,000

13'3,500 129, E,OO

2 3 0 ,0 0 0 i ~ 3 0 000

2 3 0 ,0 0 0 2 3 0 , 0 0 0


26/27

rlOSPITAL

BALANCE SHEET

JANUARY

31

(UNAUDITED)

Cw't 'ent a s s e t s :

Cash and

I r ,vestmeYlt

s

P a t i e n t s

a c c o u n t s r e c e i v a b l e - n e t

Due

frc1fll gC1ver Y1rneY 1t ageY'lc i es

IYlventot ies

Pt 'eoa i d ex per-,ses

Other

r e c e i vab l e s

Tota l current

a s s e t s

D e p r e c i a t i o n

funds

Es t a t e fUl' ,ds

B()Y'ld

f l lY lds

BOYld

c o s t S - Y l e t

Property , p l a n t and equipment-

net o f accumulated

d e p r e c i a t i o n

TOTAL ASSETS

Curren t liabilities

Accounts

o a y a b le

Accrued p a y r o l l

t a x e s

Acct'ued

payt 'o

11

Acct 'ued v a ca t iDYl

Current o o r t i o n

long- term

d eb t

Othet ' acc t 'ua l s

Accrued

i n t e r e s t

payab le

Due to governmenta l a g e n c i e s

T o t a l c u r r e n t liabilities

Long-term

d e b t - n e t o f

current

p o r t i o n

FUYld ba 1

aY'lee:

Beg i rn d ng

3 , 480 , 4 ~ ~ ~

F i s c a l

y e a r - t o - d a t e

p r o f i t or

126 ,534

T r a n s f e r to o r from r e s t r i c t e d

fUY lds

TOTAL

LIABILITIES

AND

FUND

BALANCE

2

1991

210,071

8 8 7 , 3 5 2

7 ,175

1 2 4 , 5 0 9

1 3 6 , 2 9 6

1 , 5 0 0

1 ,356 ,904

179 ,394

711 ,222

480 ,297

19,355

3 , 5 7 4 , 3 1 2

5 3 3 ~ 4 9 5

========::::

1 1 3 , 7 2 1

50 ,460

2 7 , 9 0 3

l5E 7E i=:

2 0 6 , 5 1 5

81 ,218

15 ,577

5 0 , 2 6 5

702 ,521

2 , 0 2 1 , 9 4 8

3 , 5 0 7 , 0 2 6

6 , 3 3 1 , 4 9 5

===.======

1990

5 9 1 , 8 9 3

9 2 5 , 2 3 8

15,011

2 9 ~ 5 8 2

155 ,755

424

1 ,828 ,914

125 ,115

714 ,588

/,/,4,

189

21 ,150

5 , 585 , 932

=::::======::::

4 ~ : ; : 9 5

4 2 , 4 3 8

.99,85' ,

149,8'31

~ : : : 6 3 6 3

i 3 5 ~ 7 9 6

14,587

4 1 , 7 5 5

815 ,089

2 , 2 E ~ 2

~ = :

3 ,548 ,

115

6 , 6 8 5 , 9 3 c

::::=::::::::::::::::::::=:::::


27/27

22

R e f e r e n c e s

Anderson ,

H. J .

1990) . Repor t : h o sp i t a l s need

more

s o p h i s t i c a t e d p lann ing e f f o r t s . Hoap i t a l s ,

64,

50-51 .

S t a f f .

1990 ,

September ) . S ta tement o f cash f lows as a

f i n a n c i a l management t o o l .

Hea l th

Care

News,

8 3 ) , - 4 .

Bent ivegna ,

P.

I . , & Colwel l ,

T.

G.

1990 ) .

Master p l an

l a y s foundat ion for f a c i l i t y inves tmen ts .

H ea l t h ca r e

Financ ia l

Management , 44, 44-50 .

Charny,

R.

M

& Kazemek,

E. A. 1990) . Improving

depar tment

q u a l i t y .

Hea l th ca re

Financ ia l

Management,

44,

94.

C i rn , J . G e l l a t l y ,

D. L.

1988) . Financ ia l management.

In J . A.

M il le r e d . ) ,

NAB Study Guide .

pp.

99-115) .

Washington DC:

N at i o n a l A sso c i a t i o n o f

Board o f Examiners

C lev e r ly , W

O.

1986) . E s s e n t i a l s

o f

Heal th Care

Finance

2nd

e d . ) .

Columbus: Un iv e r s i t y

o f

Ohio .

Hamil ton/KSA. 1990) . How h o s p i t a l ceos

p l an

to c o n t r o l

c o s t s .

H o s p i t a l s ,

64, 18 .

Jacobs ,

P.

1986) .

The

Economics

o f

Heal th

and

Medical

Care

2nd e d . ) .

R o ck v i l l e ,

MD: Aspen.

Kahle r , R. D. 1990 , Spr ing) .

Fin an c i a l

management.

Aspec t s o f Hea l th F a c i l i t i e s ,

433-450.

Kistner , w. 1990) . Organ iz ing a p e r s o n a l f i n a n c i a l

p lan .

Hea l t h ca re F i n a n c i a l

Management, 44,

94.

P a l l a r i t o , K.

1990) .

Hosp i t a l s may be over look ing

o p p o r t u n i t i e s t o make t h e most o f

t h e i r

cash ,

expe r t s say . Modern Hea l th ca re ,

20,

41 .

Documents

Preparing a Budget for the Small Hospital