https://canvas.fau.edu/courses/83555/files/18279698/download?wrap=1An operating budget combines forecasts for revenues and expenses. Projections for the next fiscal year are made on the basis of some reasonable assumptions.Budgeting Revenues First, forecast anticipated census volume by pay type. Next, forecast the anticipated reimbursement. Basic equation: R = Q × P, Q (quantity: patient days) × P (price: charges, reimbursement)Note: Budgeting software is programmed to calculate patient days as average daily census figures are entered. Software programs calculate revenues automatically as the census and per diem rates are entered. Ancillary and other revenues are added to arrive at the total revenue figureExcel Exercise: Exhibit17_9.exercise.xlsxThe Excel file for Exhibit 17-9 has been provided. The charges and reimbursement rates for October 2018 are given. Assume that private-pay and private insurance rates will be increased by 4% on January 1, 2019, and that all third-party reimbursement rates will increase by 3%. The same increases will take place in October 2019. Existing Veterans rates will continue till the contract expires. Use the census projections in Exhibit 17–9 to calculate the total revenue that will be budgeted for January 2019. Calculate the budgeted revenue for each of the 12 months and for the entire year 2019.Note that the revenue projections do not include ancillary and other revenues.Budgeted Expenses Departmental managers should give their inputs Projecting labor costs is the most challenging aspect, but labor hours for some departments are fixed Allowances for overtime, training, and orientation should be determined When funds are allocated for reducing absenteeism and turnover, the budget should anticipate future cost savings After projecting labor hours, average hourly wages need to be projected, taking into account wage increases and labor market conditions Labor cost (C) = Hours of labor (H) × Average hourly wage rate (W) Finally, all other anticipated expenses should be included Variable expenses are generally projected on the basis of PPD costs Costs should also be included for marketing and public relations


Homework Essay Writers

Lets Start Working

Plagiarism Free

We use anti-plagiarism software to ensure you get high-quality, unique papers. Besides, our writers have a zero plagiarism mentality

On Time Delivery

Your essay will be delivered strictly within the deadline.  If you have an urgent order, we can do it!

Money Back Guarantee

We offer warranty service, including free revisions, and a right to request a refund incase your expectations are not met!


Our Advantage

  • Say “NO” to plagiarism – FREE plagiarism report as an addition to your paper
  • The lowest prices that fit excellent quality
  • Authorship – you are the one who possesses the paper. We DO NOT re-sale or re-use any of them.


Our Freebies

  • Free Cover Page
  • Free Revisions
  • Free Reference Page
  • Free 24/7 support

Pin It on Pinterest

Share This