Question

You are the administrator for Kaiser Fontana Psychiatry. You have been asked to estimate your budget for fiscal year 19/20. The budget office has given you the following guidelines: 1. All revenue is projected to be 4% higher in 20/21 than 19/20 2. Staff benefit rates will go up 2% in 20/21 over 19/20 3. All staff salary should be projected in 20/21 to go up 3.5% 4. All physician salary will remain stagnate, but physician benefit rates will increase 2% 5. You need to put in a new expense of computer leases into your miscellaneous expense category at $5,000 6. Your ambulatory clinical lease is increasing by $8,000 Using the chart below Calculate your 19/20 projections including your expected profit or loss 20/21 Clinical Revenue Other Revenue 19/20 $2,000,000.00 $50,000.00 $2,050,000.00 Physician Salary Physician Benefits Staff Salary Staff Benefits Ambulatory Rent Miss Expense $750,000.00 $285,000.00 $150,000.00 $57,000.00 $175,000.00 $80,000.00 $1,497,000.00 Profit/Loss $553,000.00

Answer 1

Clinical Revenue Other Revenue 19/20 Expected Changes 2000000.00 Increase by 4% 50000.00 Increase by 4% 2050000.00 20/21 2080000.00 52000.00 2132000.00 Physician Salary Physician Benefits Staff Salary Staff benefits Ambulatory Rent Misc. Expenses 750000.00 Remain same 285000.00 Increase by 2% 150000.00 Increase by 3.5% 57000.00 Increase by 2% 175000.00 Increased by $8000 80000.00 New Expense $5000 1497000.00 750000.00 290700.00 155250.00 58140.00 183000.00 85000.00 1522090.00 Profit/Loss 553000.00 Expected Profit/Loss 609910.00