Financial management

ASSUMPTIONS AMBULATORY SURGERY CENTER

1. 2,000 square feet per OR.

2. 6 ORs

3. Bad Debt 4%

4. FTEs 6 per 1,000 cases Salary $40,000 per FTE. Benefits 25%.Clinical supplies 15% of Net Revenue

5. Collections 50% of Billings

6. Net Revenue $3,500 per case

7. Purchased services $60,000 per month

8. Management Fee 5% of Net Revenue

9. Malpractice $40,000 per year

10. Other Expenses $50,000 per year

11. 700 cases per OR

12. Janitorial $.30 per square foot per month

13. Utilities $.36 per square foot per month

14. Lease payment is the sum of the monthly payment for the building financing and the equipment financing.

15. Building cost per square foot $200

16. Interest on building loan is 6.5% on a 10 year note.

17. Interest rate on the equipment is 7.5% for a 7 year note.

18. Equipment cost is 25% of the building cost.

19. Student determines the ramp up of the cases per month.