Need business and finance help with Multiple questions on Finance and percentage breakdown

University of Scranton Hospital is a 175-bed community
hospital serving a rural area of Pennsylvania. 
It is located 65 miles from a large metropolitan area and has a fine
reputation.

  The
hospital is fully accredited and is licensed by the state.  The hospital offers general medical/surgical
services with a bed complement as follows:

  Medical/Surgical  130

  Pediatric   20

  ICCU   10

  OB   15

  Total  155

  The
hospital has a 10 bed Ambulatory Surgical Unit. 
The hospital is in sound financial condition with a physical plant that
is 15 years old and in excellent condition.

  The hospital
has just recruited a new general surgeon and an internist.  These recruitment efforts filled a major need
of the institution. It is estimated that in today’s current marketplace general
surgeons are expected to increase inpatient admissions to an acute care
community hospital by 1.5% annually and internists by .5%.

  It is
expected that admission volumes will increase with the addition of these two new
physicians.

  The
community population has been relatively stable over the past 10 years and
there is no expectation that this trend will change.

 

  The
percentage breakdown of patients by payor mix is as follows:

  Medicare  51%

  Blue
Cross  16%

  Medical
Asst  08%

  HMO  10%

  Commercial
INS  07%

  Other  05%

  Self
Pay  03%

  Total    100%

  The
population breakdown is as follows:

  Under
19  25%

  19
to 64  44%

  65
and over  31%

  The primary
initiative or goal for the 2014-2015 fiscal year is the establishment of a
15-bed Psychiatric Unit. This new unit will be infused into the current bed complement
with no increase in the 175 bed count expected. This unit is expected to occupy
space for 15 beds currently not set up and staffed at the hospital.

  It is
expected that during the year there will be an increase in inpatient services
as a result of the Psychiatric Unit.  The
hospital laboratory is buying two new pieces of equipment at a cost of $400,000
that will allow them to do 35% more tests in house rather than send these tests
out to a reference lab. It is also expected that the Radiology Department is purchasing
a new CT scanner that is expected to increase current radiology volumes by
3.25%.

  The budget
calendar and target dates for budget completion are the same in this year’s
budget as in years past.

  In the new
fiscal year, the hospital plans to:

a.  Establish
a separate distinct 15-bed inpatient psychiatric unit.

b.  Install
new equipment in the laboratory to enable the hospital to do 35% more tests
in-house rather than send them to a reference lab.

c.  Recruit
a general surgeon and an internist.

d.   Purchase an additional CT scanner which is
expected to increase current radiology volumes by 3.25%.

FOUR DEPARTMENTS ARE INVOLVED IN OUR BUDGET EXERCISE.  THEY ARE NURSING, LABORATORY, PHARMACY AND
RADIOLOGY SERVICES.

STATISTICAL DATA

    2012  2013    2014  2015

Admissions In Pt (Nursing)  7395  7400  7370

Laboratory Test  399330  411810  421564

Pharmacy Rx  99832  100011  99642

Radiology Exams  68222  69124  68950

  Laboratory spent
$79,866 on supplies in 2012.  They spent
$86,480 in 2013 and $96,959 in 2013. 
These figures represent the cost of supplies to do tests at the hospital.
The hospital spent $122,000 to perform tests outside the hospital last
year.  The cost of lab supplies is
expected to increase 10% in the next
budget year as a result of deflation. The hospital also had supplies costs in
Radiology of $ 395,205 in 2012, $405,222 in 2013 and 410,100 in 2014. There is
expected to be an industry wide increase in radiology supplies costs of 6.5% in
the next budget year.

  2012  2013  2014  2015

Laboratory Expenses

Supplies  $
79,866  $ 86,480  $ 96,959

 

Radiology Expenses

Supplies  $395,205  $405,222    $410,100

Present Position Control Plan

NURSING JOB
CLASSIFICATION LISTING

POSITION TITLE  AUTHORIZED
POSITIONS

Director of Nursing  1
ft

Assistant Director  2
ft

Nurse Supervisors  4
ft

Head Nurse  8
ft

Staff Nurses RN  80
ft

  15
pt

LPN  25
ft

  10
pt

Nurses Aides  10
ft

Orderlies  6
ft

Unit Desk Clerks  6
ft

  4
pt

Secretary  1
ft

LABORATORY

Department Head  1
ft

Med Technologist  12
ft

  2
pt

Lab Tech  4
ft

Lab Assistant  2
ft

Secretary  1
ft

PARIENT REVENUE

Gross Revenue Projected for the 2014-2015 budget year is as
follows:

  In Patient  $30,675,000

  Out Patient  $36,878,000

Total  $67,553,000

Current Reimbursement
Formulas:

  In
Patient  Out
Patient

Medicare  $5760/case  38% of Charge

HMO 
$1215.00/pat day  31% of
Charge

Other Insurance  7675.00/discharge  42.5% of Charge

Expected length of stay (LOS) in 2015 is 3.4.

INSTRUCTIONS:  

1. Describe
   the mission, assumptions and objectives for the upcoming budget year for
   the departments involved. (Nursing, Laboratory, Pharmacy & Radiology)PART
   A
2. Establish
   statistics volume projections for the budget year 2015 for all four (4)
   departments. PART A
3. Establish
   a position control plan for the new Psychiatric Unit (Part of Nursing )PART
   A
4. Establish
   a position control plan for nursing, and laboratory.(PART A)
5. Complete
   supplies expense item for nursing, laboratory & radiology for 2015.
   (PART B).
6. Project
   the expected net revenue for all Medicare, HMO, and all Other Insurance patients.(PART
   D)

Be sure to explain
all work in detail!!