Question

In: Finance

2018 Fiscal Year for XYZ Hospital Depreciation: 448,350 Insurance expense: 373,030 Interest expense: 280,450 Investment income:...

2018 Fiscal Year for XYZ Hospital

Depreciation: 448,350

Insurance expense: 373,030

Interest expense: 280,450

Investment income: 270,900

Repairs/maintenance: 222,740

Patient Services revenue: 10,725,260

Rent expense: 299,250

Salaries and benefits: 6,735,610

Supplies: 1,025,625

Utilities: 227,500

Based upon your income statement, answer the following in the space provided:

b. What is the net patient revenue? _______________

c. What are the total expenses for the year? ______________

d. What is the hospital's bottom line for the year? ______________

e. What % of net patient revenue is spent on salaries and benefits? __________

Expert Solution


Answer b
Net patient revenue =	$10,725,260.00

Answer c
Total expenses for the year
Depreciation	$448,350.00
Insurance Expense	$373,030.00
Interest Expense	$280,450.00
Repairs / Maintenance	$222,740.00
Rent Expense	$299,250.00
Salaries and benefits	$6,735,610.00
Supplies	$1,025,625.00
Utilities	$227,500.00
Total expenses for the year	$9,612,555.00

Answer d
Hospital's bottom line for the year
Net Patient revenue	$10,725,260.00
Add : Investment Income	$270,900.00
Less : Total expenses for the year	$9,612,555.00
Hospital's bottom line for the year	$841,805.00

Answer e
% of net patient revenue is spent on salaries and benefits = Salaries and benefits / net patient revenue
% of net patient revenue is spent on salaries and benefits = $67,35,610 / $10,725,260 = 62.80%

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