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Operating Budget A

Operating Budget A
OPERATING BUDGET FOR 2014
JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL %
INCOME
Professional Fees $ 3,958,456.20 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 329,871.35 $ 3,958,456.20 100.19%
Other Revenue 24,000.00 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 2,000.00 2,000.00 24,000.00 0.61%
Patient Refunds (23,252.00) (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) (1,937.67) (23,252.00) -0.59%
Refund Insurance Companies (8,088.00) (674.00) (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) -0.20%
329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 329,259.68 3,951,116.20 100.00%
EXPENSES
Salaries-Physician Owners 218,692.31 57,692.31 57,692.31 57,692.31 57,692.31 86,538.46 57,692.31 57,692.31 57,692.31 57,692.31 86,538.46 57,692.31 911,000.00 23.06%
Payroll Taxes-FICA Physician 13,140.64 836.54 836.54 836.54 836.54 1,254.81 836.54 836.54 836.54 836.54 1,254.81 836.54 23,179.12 0.59%
Payroll Taxes-FUTA Physcian 112.00 112.00 0.00%
Payroll Taxes-SUTA Physician 235.20 235.20 0.01%
Insurance-Physician 2,860.24 1,350.52 1,863.07 2,234.54 1,350.52 3,599.19 2,234.54 1,350.52 1,863.07 2,234.54 1,350.52 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 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 0.51%
Meals & Entertainment-Physician 8,940.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 745.00 8,940.00 0.23%
Salaries-Primary Care Providers 5,007.69 5,007.69 5,007.69 5,007.69 5,007.69 7,511.54 5,007.69 5,007.69 5,007.69 5,258.08 7,887.12 10,258.08 70,976.35 1.80%
Salaries-Medical Support 33,228.15 33,228.15 33,352.55 33,352.55 33,609.53 50,580.79 33,720.53 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 21,106.22 21,248.22 21,332.25 21,341.13 32,011.70 21,341.13 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 4,539.67 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 8.08 8.08 8.08 12.12 9.68 1,443.28 0.04%
Payroll Taxes-SUTA Staff 598.17 598.17 600.85 456.32 421.15 296.73 76.99 43.35 28.66 28.66 43.00 39.16 3,231.20 0.08%
Insurance Staff 4,024.41 4,134.51 4,134.51 4,134.51 4,134.51 3,385.88 4,134.51 4,134.51 4,134.51 4,134.51 3,385.88 4,134.51 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 3,000.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 8,500.00 0.22%
Supplies-Drugs & Medications 48,768.00 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 4,064.00 48,768.00 1.23%
Supplies-Medical 149,508.54 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 12,459.04 149,508.54 3.78%
Supplies-Administrative 18,960.00 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 1,580.00 1,580.00 18,960.00 0.48%
Supplies-Medical Forms 7,908.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 659.00 7,908.00 0.20%
Supplies-Housekeeping/Maintenance 948.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 79.00 948.00 0.02%
Supplies-Computer 5,172.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 431.00 5,172.00 0.13%
Laboratory Services 10,020.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 835.00 10,020.00 0.25%
Rent-Buildings 245,220.00 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 20,435.00 245,220.00 6.21%
Utilities 1,656.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 138.00 1,656.00 0.04%
Rent/Lease-Furniture & Equipment 137,309.52 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 11,442.46 137,309.52 3.48%
Depreciation-Medical Equipment 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 3,170.63 38,047.56 0.96%
Depreciation-Laser Equipment 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 2,627.47 31,529.64 0.80%
Depreciation-Office Equipment 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 2,974.75 35,697.00 0.90%
Depreciation-Computer Equipment 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 3,563.72 42,764.64 1.08%
Franchise Tax 750.00 750.00 0.02%
Property Taxes 3,100.00 8,132.00 11,232.00 0.28%
Maint/Repair-Furniture & Equipment 21,204.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 1,767.00 17,417.00 3,272.00 1,767.00 38,359.00 0.97%
Accounting Services 800.00 6,000.00 9,200.00 4,700.00 700.00 1,325.00 700.00 700.00 700.00 700.00 700.00 1,450.00 27,675.00 0.70%
Legal Services 12,912.00 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 1,076.00 12,912.00 0.33%
Recruitment 5,400.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00 0.14%
Employee Development & Training 2,580.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 215.00 2,580.00 0.07%
Employee Relations 10,380.00 865.00 865.00 865.00 865.00 865.00 865.00 865.00 865.00 865.00 1,365.00 865.00 9,865.00 19,880.00 0.50%
Uniforms & Laundry 2,436.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 203.00 2,436.00 0.06%
General Liability Insurance-G&A - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 8,000.00 - 0 - 0 8,000.00 0.20%
Professional Liability Insurance 16,039.00 16,039.00 0.41%
Telephone/Internet Access 59,616.00 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 4,968.00 59,616.00 1.51%
Postage & Freight 13,380.00 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 1,115.00 13,380.00 0.34%
Printing 28,500.00 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 2,375.00 28,500.00 0.72%
Books & Subscriptions 9,300.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 775.00 9,300.00 0.24%
Marketing 4,778.00 2,420.00 4,778.00 16,070.00 4,778.00 2,420.00 4,778.00 2,420.00 4,778.00 2,420.00 4,778.00 6,420.00 60,838.00 1.54%
Amortization 31,560.00 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 2,630.00 31,560.00 0.80%
Bank Fees 13,620.00 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 1,135.00 13,620.00 0.34%
Interest Expense 73,656.00 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 6,138.00 6,138.00 73,656.00 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 $36,000.00 $36,000.00 $36,000.00 $ 144,000.00
Net Cash after Dividends $ (80,566.52) $ 95,972.32 $ 56,379.00 $ 84,536.55 $ 101,470.86 $ (410.74) $ 100,450.21 $ 103,606.50 $ 64,826.34 $ 60,253.74 $ 34,820.24 $ (90,038.77) $ 531,299.72

Budget B

Budget B
Clinic Revenue Visits Per Year Reimbursement Revenue
Medicaid % 1560 $50.00 $78,000.00
Medicare % 1170 $45.00 $52,650.00
Other % 390 $60.00 $23,400.00
Charity Care % 390 $25.00 $9,750.00
No Pay % 390 $0.00 $0.00
TOTAL VISITS PER YEAR 3900
TOTAL CLINIC REVENUE: $163,800.00
Lab Revenue Labs Per Year Reimbursement Revenue
Number of labs per year 2340 $25.00 $58,500.00
TOTAL LAB FEES: $58,500.00
Medication Revenue Medications Per Year Reimbursement Revenue
Number of meds per year 1950 $20.00 $39,000.00
TOTAL MEDICATION REVENUE: $39,000.00
Procedure Revenue Procedures Per Year Reimbursement Revenue
Number of procedures per year 1300 $20.00 $26,000.00
TOTAL PROCEDURE REVENUE: $26,000.00
TOTAL REVENUE $287,300.00

Budget C

Budget C
REVENUES
Description Detail Yearly Budgeted Amount
Clinic Revenue Lab 325 clients per month, 3,900 total visits 163,800.00
Revenue Medications 195 of billable labs per month, 2340 labs per year 58,500.00
Revenue Procedures 162 meds per month, 1,950 per year 39,000.00
Revenue Less # of billable procedures done per year 26,000.00
Contractuals Percentage negotiated with payer 114,920.00
TOTAL CLINIC REVENUE 402,220.00
EXPENSES
Description Detail Yearly Budgeted Amount
PAYROLL
Provider salary Total salary 60,000.00
Receptionist salary 13,395.00
LPN salary 28,182.00
Total Salary & Wages: 101,577.00
Provider FICA Salary x 0.0765 4,590.00
Receptionist FICA Salary x 0.0765 1,024.68
LPN FICA Salary x 0.0765 2,155.92
Total FICA 7,770.60
Unemployment
Health Insurance 10,222.08
Life Insurance 2,216.00
Long Term Disability 666.00
401K Employer Contribution
Total Additional Benefits: 13,104.08
TOTAL PAYROLL: 122,451.68
OPERATING EXPENSES
Supplies Food 100
Misc. Supplies 1,000.00
Medications 5,000.00
Medical Supplies 4,500.00
Office Supplies 500.00
Printing 500.00
Postage UPS, Fed Ex, Postage 500.00
Professional Fees
Consulting Accountants fees 1,000.00
Audit Fee 1,500.00
Legal Fees 1,500.00
Licensing Fees Clinic 300.00
Bank Fees 250.00
Advertising 5,000.00
Insurance
Worker's Compensation 1,575.00
Gen/Pro/Med Mal liability, professional liability, employment, practice liability, property insturance, etc. 15,000.00
Umbrella Ins. 830.00
D&O Ins. 1,000.00
Professional Development Meetings Continuing education for provider and staff 1,000.00
Cont. Memberships etc. Exp. Rural Health Association 300.00
Travel & Entertainment Monies for getting to conference 1,000.00
Facility
Telephone Regular Service 1,800.00
Internet Access 300.00
Utilities Water, Electric, Garbage 5,000.00
Small Equipment & Tools 300.00
Equipment Rental 1,200.00
Capital Equipment 10,000.00
Rent or mortgage 7,200.00
Maintenance cleaning service, building & grounds upkeep 1,600.00
TOTAL OPERATING EXPENSES 69,755.00
TOTAL EXPENSES 192,206.68
Yearly Budgeted Amount
NET INCOME (Loss) [Revenue - Expenses] 210,013.32

PART 3 EXAMPLE Budget D

EXAMPLE Budget D
Total clinic revenue = 250,000
2% increase in total clinic revenue = 5,000
NEW total clinic revenue = 250,000 + 5,000 = 255,000
Monthly total clinic revenue = 255,000/12 = 21,250
Total expenses = 210,000
0.5% decrease in total expenses = 1,050
New total expenses = 210,000 - 1,050 = 208,950
Monthly total expenses = 208,950/12 = 17,412.5
New Computer System Upgrade = 60,000
Monthly cost of computer system upgrade = 5,000
EXAMPLE 12-month Budget D JAN. FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL
Total Clinic Revenue (with 2% increase) 255,000 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 21,250 255,000
Total Expenses (with 0.5% decrease) 208,950 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 17,412.50 208,950.00
New Computer System Upgrade 60,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000.00
New Total Expenses (including computer system upgrade) 268,950.00
NET INCOME/LOSS -13,950.00

YOUR PART 3 ASSIGNMENT HERE