| Patton - Fuller Community Hospital |
| Operating Budget |
| 2009 |
| (In Thousands) |
| (Projection) |
| | 2008 | Budget % Change from 2008 | 2009
(Projection) | Based on these 2008 assumptions: a 3% overall "inflation rate" in 2009, with the cost of oil disproportionately affecting some expense items. |
| Revenues |
| Net Patient Revenue | $418,509 | 7% | $447,805 | Patient revenue will increase with little or no increase in patient volume, due to new managed care contracts |
| Other Revenue | $2,805 | 15% | $3,225 | Marketing's plan to increase donations by 15% |
| Total Revenues | $421,314 | 7% | $451,030 |
| Expenses |
| Salaries and benefits | $214,129 | 3% | $220,553 | Salaries will hold to a 3% overall increase in cost, no increase in labor hours due to no increase in patient volume. |
| Supplies | $71,346 | 3% | $73,487 | Supplies cost will increase more due to the rising cost of oil and its effect on the cost of plastics and transpiration |
| Physician and professional fees | $107,065 | 3% | $110,277 | contracts for fees have a built-in 3% increase |
| Utilities | $1,164 | 5% | $1,222 | Utilities cost will increase more due to the rising cost of oil. |
| Other | $1,785 | 3% | $1,838 |
| Depreciation & Amortization
("non-cash" expenses) | $24,955 | 20% | $29,946 | Some high-cost equipment (air conditioning, telephone system, all patient beds and headwalls) will have to be replaced this year, and "depreciation" will rise sharply. |
| Interest | $3,597 | 3% | $3,705 | The repayment plan for any monies borrowed in 2009 will not come due until 2010. |
| Provision for doubtful accounts | $13,383 | 10% | $14,721 | The renegotiation of Managed Care plans could make collections less certain. |
| Total Expenses | $437,424 | 4% | $455,749 | Total expenses will rise 4% |
| Operating Income | ($16,110) | | ($4,719) | Operating Income will improve, with the hospital's loss reduced by 2/3 |
| Non-operating Income (Loss) |
| Investment Income | $264 | 15% | $304 | The Market has been going up for years, the "bull market" should continue in 2009. |
| Net Income | ($15,846) | | ($4,416) | The hospital's loss will be further reduced by good returns on investment income. |
desond
2009OperBudget1.xlsx
