In: Accounting
A local clinic created the following static budget table for the year 2015. Complete the table below by filling the blanks and creating a profit & loss statement under section IV
Section I-Volume Assumptions
A-FFS (fee for service) 50,000 vists
B-Capitated lives 30,000 members
Number of member-months ?
Expected utilization per member-month 0.25
Number of visits ?
Total Expected Visits ?
Section II- Revenue Assumptions
A-FFS $30/visit (30x50,000 expected visits)=$1,500,000
B-Capitated lives $3 PMPM (3x 360,000 member-months)=$1,080,000
Total Expected Revenues ?
Section III-Cost Assumptions
A-Variable Costs:
Labor (60,000 hrs at $25/hr)=$1,500,000
Supplies (200,000 units at $1.5unit/hr)=$300,000
Total variable Cost $1,800,000
Variable cost per visit (1,800,000/140,000)=$12.8571429
B-Fixed Costs $500,000
C-Total expected costs ?
Section IV-Profit & Loss statement-create
Section I-Volume Assumptions; |
|
A. FFS (Fee for service) |
50000 visits |
B. Capitated lives |
30000 members |
Number of member-months |
360000 |
Expected utilization per member-month |
0.25 |
Number of visits (360000 * 0.25) |
90000 visits |
C. Total Expected Visits (50000 + 90000) |
140000 visits |
Section II- Revenue Assumptions; |
|
A. FFS ($30 * 50000) |
$1500000 |
B. Capitated lives ($3 * 360000) |
$1080000 |
C. Total Expected Revenues ($1500000 + $1080000) |
$2580000 |
Section III-Cost Assumptions; |
|
A-Variable Costs: |
|
Labor (60000 hours * $25) |
$1500000 |
Supplies (200000 units * $1.5) |
$300000 |
Total variable costs |
$1800000 |
Variable cost per unit ($1800000 / 140000 visits) |
$12.8571429 |
Fixed costs |
$500000 |
C-Total expected costs ($1800000 + $500000) |
$2300000 |
Section IV-Profit & Loss statement |
|
Revenues; |
|
FFS |
$1500000 |
Capitated |
$1080000 |
Total |
$2580000 |
Costs; |
|
Variable: |
|
FFS ($1800000 * 50000 / 140000) |
$642857.14 |
Capitated ($1800000 * 90000 / 140000) |
$1157142.86 |
Total |
($1800000) |
Contribution margin |
$780000 |
Fixed costs |
($500000) |
Projected profit |
$280000 |