Revenue Questions

Part 1 – Net Revenue per Patient 

• Using the Patient Cost Analysis Form in the Appendix from your “Revenue Management 

Manual” text (Form A-26), calculate your current costs per patient using the following 

information. 

 Total Number of Patients $16,245 

 Total Expenses $568,758 

 Fixed Expenses $389,600 

 Total Annual Revenue $1,090,800 

 

o What is the Net Revenue per patient? 

Part 2 – Reviewing the Budget 

• Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family 

Practice ) as well as the Sample Operating Budget. 

• Compare the month of January to the Month of June. 

• Were these months over-budget or under-budget and why? As an office manager what do 

you see that can be listed as issues in these months? 

Part 3 – Preparing a Budget for 2012 

• Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family Practice ). Make the following adjustments and share your results: 

o Patient Revenue is expected to grow by 3% due to the signing of a new managed 

care contract. What is the new dollar amount for patient revenue due to this 

increase? 

o The cost of expenses is expected to increase to 1.5%. What is the new dollar amount 

for the cost of expenses? 

o A new roof is needed which will cost $50,000. Prepare a new 12 month budget, in 

MS Word or wordpad or MS Excel, which reflects the 3% growth in patient revenue, 

the 1.5% in cost of expenses and the cost of the new roof. 

 

Sheet1

329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 $ 3,958,456.20

2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00

(1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (1,937.67) (23,252.00)

(674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (674.00) (8,088.00)

329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68

57,692.31 57,692.31 57,692.31

57,692.31 57,692.31 57,692.31 57,692.31 86,538.46 57,692.31

836.54 836.54 836.54

836.54 836.54 836.54 836.54 1,254.81 836.54

0.59%

112.00 0.00%

235.20

1,350.52

2,234.54 1,350.52 1,863.07 2,234.54 1,350.52

1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 1,670.00 20,040.00

745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 8,940.00 0.23%

5,007.69 5,007.69 5,007.69 5,007.69

5,007.69 5,007.69 5,007.69

33,228.15

33,352.55

33,720.53

21,106.22

21,341.13

4,539.67

8.08 8.08 8.08

9.68

598.17

28.66

4,134.51 4,134.51 4,134.51

4,134.51 4,134.51 4,134.51 4,134.51 3,385.88 4,134.51

500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00

4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 4,064.00 48,768.00

12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 12,459.04 149,508.54

1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 1,580.00 18,960.00

659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 7,908.00 0.20%

79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 948.00

431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 5,172.00

835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 10,020.00

20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 20,435.00 245,220.00

138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 1,656.00 0.04%

11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 11,442.46 137,309.52

3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63 3,170.63

2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47 2,627.47

2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75 2,974.75

3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72 3,563.72

750.00 0.02%

1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00

1,767.00

700.00

700.00 700.00 700.00 700.00 700.00

1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 1,076.00 12,912.00

450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00

215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 2,580.00

865.00 865.00 865.00 865.00 865.00 865.00 865.00 865.00

865.00

203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 2,436.00

– 0 – 0 – 0 – 0 – 0 – 0 – 0 – 0

– 0 – 0 8,000.00 0.20%

16,039.00

4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 4,968.00 59,616.00

1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 1,115.00 13,380.00

2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 2,375.00 28,500.00

775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 9,300.00

4,778.00

4,778.00 2,420.00 4,778.00 2,420.00 4,778.00 2,420.00 4,778.00

2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 2,630.00 31,560.00 0.80%

1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 1,135.00 13,620.00 0.34%

6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 6,138.00 73,656.00

$36,000.00 $36,000.00 $36,000.00

$ (80,566.52) $ 95,972.32

$ 84,536.55 $ 101,470.86

$ 100,450.21 $ 103,606.50

$ 60,253.74 $ 34,820.24

																																																																																																																																																																																																																																																																																																																																																Sample Practice
OPERATING BUDGET FOR 2001
JAN	FEB	MAR	APR	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL	%
INCOME
Professional Fees		$ 3,958,456.20												329,871.35	100.19%
Other Revenue		24,000.00												2,000.00	0.61%
Patient Refunds		(23,252.00)												(1,937.67)	–	0.59%
Refund Insurance Companies		(8,088.00)												(674.00)	–		0.20%
											329,25	9.68	3,951,116.20	10	0.00%
EXPENSES
Salaries-Physician Owners	218,692.31									57,692.31		86,538.46	911,000.00	23.06%
Payroll Taxes-FICA Physician	13,140.64									836.54		1,254.81	23,179.12
Payroll Taxes-FUTA Physcian		112.00
Payroll Taxes-SUTA Physician		235.20	0.01%
Insurance-Physician	2,860.24				1,350.52		1,863.07			2,234.54	3,599.19	7,849.19	30,140.46	0.76%
Dues, Memberships, License Fees	900.00	584.00	485.00	600.00	408.00	953.50	535.00	580.00	225.00	1,695.00													1,135.00	1,085.00	9,185.50		0.23%
Meetings & Travel-Physician		20,040.00												1,670.00	0.51%
Meals & Entertainment-Physician		8,940.00												745.00
Salaries-Primary Care Providers								5,007.69	7,511.54	5,25			8.08	7,887.12	10,258.08	70,976.35	1.80%
Salaries-Medical Support		33,228.15		33,352.55	33,609.53	50,580.79		33,720.53	33,834.53	34,066.30	51,707.37	59,077.32	463,478.28	11.73%
Salaries-Administrative		21,106.22	21,248.22	21,332.25		21,341.13	32,011.70	21,420.63	21,562.12	21,886.17	32,829.26	35,378.92	292,563.97	7.40%
Payroll Taxes-FICA Staff		4,539.67	4,560.05	4,566.48	4,586.81	6,892.96	4,595.31	4,601.39	4,620.93	4,682.61	7,070.42	8,010.64	63,266.92	1.60%
Payroll Taxes-FUTA Staff	474.74	435.82	257.47	123.23	49.83	33.70	22.47	12.12	1,443.28		0.04%
Payroll Taxes-SUTA Staff		598.17	600.85	456.32	421.15	296.73	76.99	43.35		28.66	43.00	39.16	3,231.20	0.08%
Insurance Staff	4,024.41									4,134.51		3,385.88	48,006.76	1.22%
Pension & Retirement Benefits	8,242.70	1,767.70	1,778.36	1,780.65	1,786.73	2,680.09	2,048.39	2,051.57	2,055.83	2,088.08	3,156.43	82,839.04	112,275.56	2.84%
Meetings & Travel-Staff											500.00	3,000.00	8,500.00	0.22%
Supplies-Drugs & Medications		48,768.00												4,064.00	1.23%
Supplies-Medical		149,508.54												12,459.04	3.78%
Supplies-Administrative		18,960.00												1,580.00	0.48%
Supplies-Medical Forms		7,908.00												659.00
Supplies-Housekeeping/Maintenance		948.00												79.00		0.02%
Supplies-Computer		5,172.00												431.00	0.13%
Laboratory Services		10,020.00												835.00	0.25%
Rent-Buildings		245,220.00												20,435.00	6.21%
Utilities		1,656.00												138.00
Rent/Lease-Furniture & Equipment		137,309.52												11,442.46	3.48%
Depreciation-Medical Equipment												3,170.63	38,047.56	0.96%
Depreciation-Laser Equipment												2,627.47	31,529.64		0.80%
Depreciation-Office Equipment												2,974.75	35,697.00	0.90%
Depreciation-Computer Equipment												3,563.72	42,764.64	1.08%
Franchise Tax		750.00
Property Taxes	3,100.00	8,132.00	11,232.00	0.28%
Maint/Repair-Furniture & Equipment	21,204.00										1,767.00	17,417.00	3,272.00	38,359.00	0.97%
Accounting Services	800.00	6,000.00	9,200.00	4,						700.00	1,325.00	1,												450.00	27,675.00	0.70%
Legal Services		12,912.00												1,076.00	0.33%
Recruitment		5,400.00	0.14%
Employee Development & Training		2,580.00												215.00	0.07%
Employee Relations	10,380.00										865.00	1,365.00	9,865.00	19,880.00	0.50%
Uniforms & Laundry		2,436.00												203.00	0.06%
General Liability Insurance-G&A											– 0		8,000.00
Professional Liability Insurance		16,039.00	0.41%
Telephone/Internet Access		59,616.00												4,968.00	1.51%
Postage & Freight		13,380.00												1,115.00		0.34%
Printing		28,500.00												2,375.00	0.72%
Books & Subscriptions		9,300.00												775.00	0.24%
Marketing						4,778.00				2,420.00	16,070.00	6,420.00	60,838.00	1.54%
Amortization		31,560.00												2,630.00
Bank Fees		13,620.00
Interest Expense		73,656.00												6,138.00	1.86%
409,826.20	233,287.36	236,880.68	244,723.13	227,788.83	293,670.42	228,809.48	225,653.19	228,433.34	269,005.95	294,439.45	383,298.45	3,275,816.48	82.91%
NET INCOME		$ (80,566.52)		$ 95,972.32	$ 92,379.00		$ 84,536.55		$ 101,470.86	$ 35,589.26		$ 100,450.21		$ 103,606.50	$ 100,826.34		$ 60,253.74		$ 34,820.24	$ (54,038.77)	$ 675,299.72	17.09%
Dividends				$36,000.00	$ 144,000.00
Net Cash after Dividends	$ 56,379.00	$ (410.74)	$ 64,826.34	$ (90,038.77)	$ 531,299.72

Sheet2

Sheet3