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Due 3/10/17 @8:00 a.m. utilize the budget at the bottom of page. 100 percent original with at least 2 references APA format. needs to have at least 1500-1700 words with at least 2 references APA format.

Established in 1977, Krona Community Hospital is a 60-bed, acute care hospital located in the heart of Banconota County. With a staff of nearly 100 physicians and specialists, 400 employees, and 75 volunteers, they offer a full range of health care services. They are accredited by The Joint Commission.

Nouveau Health, a private, not-for-profit health care chain, took over the management of Krona Hospital. Last year, state officials began to discuss Nouveau’s proposal to build a new, replacement hospital in Banconota County. The new facility would have 74 acute care beds, four observation rooms, four surgical operating rooms, one c-section room, a 24-hour emergency department, a maternity center, an intensive care unit, and extensive support services, including physical therapy and cardiac rehabilitation. All patient rooms would be private.

You are a staff member in the finance department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.

Your Key Assignment Draft is designed to help you prepare for the presentation in Phase 5. The chief executive officer (CEO) of Krona has asked that you complete the following:

Prepare next year’s financial plan and operational budget.

Note: Keep in mind that the budget you created for your Phase 2 Individual Project did not take into account the growth of the new facility. The CEO has asked that you expand that budget and provide a finalized budget that will take into account the new services offered. The CEO has stated that there is $3 million that you can incorporate into the budget for additional staffing, services, maintenance, and so forth.

Make sure the budget reflects the following:

Increase in revenue reimbursement
Allocation for the proposed improvements
Increase in salaries

Be sure to discuss the following areas:

Funding sources
Your methodology in revenue forecasting
How the new services will impact revenue
Fixed and variable costs
Project inpatient and outpatient visits based on current trends

Budget

KRONA HOSPITAL OPERATING BUDGET FOR 2017
Revenues
	Inpatient	$ 27,500,000
	Outpatient	17,250,000
	Emergency Room	10,000,000
	Laboratory	5,000,000
	Pharmacy	1,575,000
	Home Health and Hospice	1,725,000
	Ambulance Services	950,000
	Substance Abuse	250,000
	Other	850,000
Subtotal		$ 65,100,000
	Less Chartiy Care	18,000,000
Net Revenues		$ 47,100,000
Expenses
	Payroll (including nursing salaries)	$ 13,750,000
	Benefits	3,300,000
	Contract Labor	100,000
	Insurance	300,000
	General Services (laundary, security, etc)	3,000,000
	Depreciation	1,500,000
	Interest Expense	300,000
	Professional Services	10,000,000
Total Operating Expenses		$ 32,250,000

Net Income		$ 14,850,000