Hi guys! I’m new to finance and having trouble with an assignment I have to do. I have started on the spreadsheet, but I’m not sure if it’s correct. It’s due tonight and I have fallen behind due to work obligations. Anyone willing to do this and turn it back into me by 11pm? I have attached all information that my teacher has provided. The memo only has to be a page in APA format, NOT 2-4. The budget can be negotiable as well. Thank you in advance

2

>Trinity Budget Execution YTD

YTD (Jul – Dec)

Budget

,0

0,

9

,0

,349

2,49

,

7

,001,

03)

PATIENT SERVICES REVENUE

,7

5,000,000

,2

5

,000,000

4,588)

8,627

,270,

9

,881)

,000,000

,9

,230

,785)

2,191

,320

5,254

,746)

8

,000,000

$ 18,000,000

$ – 0 $ – 0

,244,253

$ 8,000,000

$ (3,474,134) $ 8,000,000 $ (7,474,134)

$ – 0 $ – 0 $ – 0

$ (3,474,134) $ 8,000,000 $ (7,474,134)

FY 2019 YTD (Jul – Dec) FY 2019 Budget

OPERATING REVENUE:

Inpatient Revenue

,000

$ 23,123,516 $ 50,000,000 $ (1,876,484)

OPERATING EXPENSES

Salaries and Wages

Employee Benefits

Professional Fees

Supplies

$ 10,000,000

Purchased Services – Utilities

$ 50,000

Purchased Services – Other

$ 50,000

Insurance

License and Taxes

Other Direct Expenses

TOTAL OPERATING EXPENSES

,565

NET REVENUE OR (EXPENSE)

The UMUC Medical Center
	FY 2 Don't use plagiarized sources. Get Your Custom Essay on URGENT: Budget Analysis and memo Just from $13/Page Order Essay																																																																						0						1						9		FY						20						19	FY 2019 Variance YTD
			OPERATING REVENUE:
			Inpatient Revenue	$						3						7						5						4						34	$ 700,000,000	$						25						40
		Outpatient Revenue	$						23						8						39	$ 525,000,000	$ (						30						6
					TOTAL	$ 607,5						38				46	$ 1,						22	$ (4,961,254)
		DEDUCTIONS FROM REVENUE:
		Contractual Adjustments	$ 476,5						43						15	$ 950,000,000	$ 1,543,						21
		Charity and Uncompensated Care	$ 6,725,4						12	$						14	$ (						27
		TOTAL DEDUCTIONS FROM REVENUE	$ 483,						26	$ 964,000,000	$ 1,268,627
		NET PATIENT SERVICE REVENUE	$ 1						24						11	$ 261,000,000	$ (6,2						29
		OTHER OPERATING REVENUE
		Other Operating Revenue	$ 3,500,000		$						10	$ (1,500,000)
		TOTAL OPERATING REVENUE	$ 127,770,119	$ 271,000,000	$ (7,729,881)
			OPERATING EXPENSES
			Salaries and Wages	$						42						32	$ 88,000,000	$ (1,067,770)
			Employee Benefits	$ 12,624,012	$ 25,000,000	$ 124,012
			Professional Fees	$ 4,082,215	$ 9,000,000	$ (4						17
			Supplies	$ 23,883,407	$ 46,000,000	$ 883,407
			Purchased Services – Utilities	$ 1,632,191	$ 3,000,000	$						13
			Purchased Services – Other	$ 11,5						36	$ 22,000,000	$ 536,320
		Depreciation	$ 8,						45	$ 17,000,000	$ (						44
		Rentals and Leases	$ 2,252,670	$ 4,000,000	$ 252,670
			Insurance	$ 2,715,						37	$ 5,000,000	$ 215,378
			License and Taxes	$ 7,992,144		$						18	$ (1,007,856)
		Interest	$ 8,393,790	$ (606,210)
		Provision For Bad Debts						$ – 0
			Other Direct Expenses	$ 4,744,642				$ 8,000,000	$ 744,642
			TOTAL OPERATING EXPENSES	$ 1						31	$ 263,000,000	$ (255,747)
		NET OPERATING REVENUE			$ (3,474,134)			$ (7,474,134)
		NET REVENUE BEFORE ITEMS LISTED BELOW
		EXTRAORDINARY ITEM
			NET REVENUE OR (EXPENSE)
Med/Surg Department Budget
FY 2019 Variance TYD
	$ 23,123,5						16				$ 50,000		$ (1,876,484)
	TOTAL PATIENT SERVICES REVENUE
$ 12,157,632	$ 23,000,000	$ 657,632
$ 3,040,408	$ 5,	750,000	$ 165,408
$ 250,160	$ 400,000	$ 50,160
$ 5,883,497	$ 883,497
$ 27,456	$ 2,456
$ 23,484	$ (1,516)
$ 57,315	$ 105,000	$ 4,815
$ 21,456	$ 40,000	$ 1,456
$ 972,157	$ 1,500,000	$ 222,157
$ 22,4						33	$ 40,895,000	$ 1,986,065
$ 689,951	$ 9,105,000	$ (3,862,549)

2015

1

2

3

0

4

5

6

7

8

0

9

,984

10

11

0

12

,861,341

13
14

15 Cash 0
16 Marketable Securities 0
17

0

18

0

19
20

21

22

23

24

– Building Service

25

26 Equipment

27

28

29 TOTAL

30

31

32
33

34

0

0

36

37 Other Assets 0
38

1,200,000

39
40

41

0

42

0

43

0

44

45

8,785,276

46

BALANCE SHEET – UNRESTRICTED FUND
Hospital: St. Anthony Medical Center, Vila Health System FYE: 12/31/2015

Lic.#: H-037

1

2

0

3

4

5

6

0

7

0

8

0

9

0

10

0

11

12

13

14

15

0

16

0

17

18

185,548

19

20

21

0

22

0

23

24

0

25

0

26

27

0

28 TOTAL

29

110,036

30

31
32

0

33
34

35

36
37

38
39

0

40
41

42

43
44

45

(35,147,027)

46

187,972,799

DOH – OHPD

Hospital: St. Anthony Medical Center, Vila Health System

Lic.#: H-037

1 OPERATING REVENUE:
2 Inpatient Revenue

3 Outpatient Revenue

4 TOTAL PATIENT SERVICES REVENUE

5
6 DEDUCTIONS FROM REVENUE:
7 Contractual Adjustments

8 Charity and Uncompensated Care

9

0

10 TOTAL DEDUCTIONS FROM REVENUE

11 NET PATIENT SERVICE REVENUE

12
13 OTHER OPERATING REVENUE
14 Other Operating Revenue

15

0

16

9,969,048

17 TOTAL OPERATING REVENUE

18
19 OPERATING EXPENSES
20 Salaries and Wages

21 Employee Benefits

22 Professional Fees

23 Supplies

24 Purchased Services – Utilities

25 Purchased Services – Other

26 Depreciation

27 Rentals and Leases

28 Insurance

29 License and Taxes

30 Interest

31 Provision For Bad Debts

32 Other Direct Expenses

33 TOTAL OPERATING EXPENSES

34 NET OPERATING REVENUE

35
36

0

37
38 NET REVENUE BEFORE ITEMS LISTED BELOW 6,802,822

39

40 EXTRAORDINARY ITEM

41

0

42
43 NET REVENUE OR (EXPENSE)

44

45

DOH – OHPD

FS-1		BALANCE SHEET – UNRESTRICTED FUND
					Hospital: St. Anthony Medical Center, Vila Health System		FYE: 12/31/2015
	ASSETS
					Lic.#: H-037
	CURRENT ASSETS:
			Cash	(2,464,387)
			Marketable Securities
	Accounts Receivable	39,102,464
	Less-Estimated Uncollectable & Allowances	2,038,650
	Receivables From Third Party Payors	(3,067,704)
	Pledges And Other Receivables	1,770,581
	Due From Restricted Funds
	Inventory	7,3						28
	Prepaid Expenses	1,230,053
	Current Portion Of Funds Held In Trust
	TOTAL CURRENT ASSETS							41
	BOARD DESIGNATED ASSETS:
			Other Assets
	TOTAL BOARD DESIGNATED ASSETS:
	PROPERTY, PLANT AND EQUIPMENT:
	Land		15,239,201
	Land Improvements	1,005,843
	Buildings	85,916,245
Fixed		Equipment	28,562,665
	Fixed Equipment – Other	9,305,052
57,547,957
	Leasehold Improvements		425,606
	Construction In Progress	225,682
198,228,251
	Less Accumulated Depreciation	62,102,069
	NET PROPERTY, PLANT & EQUIPMENT	136,126,182
	INVESTMENTS AND OTHER ASSETS:
	Investments In Property, Plant & Equipment
					35		Less – Accumulated Depreciation
	Other Investments				1,200,000
	TOTAL INVESTMENTS & OTHER ASSETS
	INTANGIBLE ASSETS:
	Goodwill
	Unamortized Loan Costs
	Preopening And Other Organization Costs
	Other Intangible Assets		8,785,276
	TOTAL INTANGIBLE ASSETS
	TOTAL ASSETS		187,972,799
					DOH – OHPD
	LIABILITIES AND FUND BALANCES-UNRESTRICTED
	CURRENT LIABILITIES
	Notes and Loans Payable
	Accounts Payable	15,538,863
	Accrued Compensation and Related Liabilities	10,399,590
	Other Accrued Expenses	2,147,237
	Advances from Third Party Payors
	Payables to Third Party Payors
	Due to Restricted Funds
	Income Taxes Payable
	Other Current Liabilities
	Current Maturities of Long Term Debt		110,036
	TOTAL CURRENT LIABILITIES	28,195,726
	DEFERRED CREDITS:
	Deferred Income Taxes
	Deferred Third Party Revenue
	Other Deferred Credits		185,548
	TOTAL DEFERRED CREDITS
	LONG TERM DEBT
	Mortgage Payable
	Construction Loans-Interim Financing
	Notes Payable	5,674,827
	Capitalized Lease Obligations
	Bonds Payable
	Notes and Loans Payable to Parent	189,173,761
	Noncurrent Liabilities
194,848,588
	Less Current Maturities of Long Term Debt
	TOTAL LONG TERM DEBT	194,738,552
	UNRESTRICTED FUND BALANCE
	EQUITY (INVESTOR OWNED)
	Preferred Stock
	Common Stock
	Additional Paid In Stock
	Retained Earnings (Capital Account for Partnership		(35,147,027)
	(or Sole Proprietorship)
	Less Treasury Stock
	TOTAL EQUITY
	TOTAL LIABILITIES AND FUND BALANCE OR EQUITY
	COMPARISON STATEMENT OF REVENUE & EXPENSE – UNRESTRICTED FUNDS
FYE: 12/31/2015
666,080,698
464,996,793
1,131,077,491
855,811,021
13,400,000
	Other Adjustments and Allowances
869,211,021
261,866,470
	9,969,048
	Tax Revenues
	TOTAL OTHER OPERATING REVENUE
271,835,518
85,864,459
25,248,024
8,144,426
47,766,813
3,264,382
23,072,640
16,910,508
4,505,340
5,430,756
15,984,288
16,787,580
2,564,197
9,489,283
265,032,696
	6,802,822
	NON-OPERATING REVENUE-NET OF EXPENSES
1,374,000
	FEDERAL INCOME TAX
8,176,822
	EXPLANATION:

2016

Hospital: St. Anthony Medical Center, Vila Health System

ASSETS Lic.#: H-037

1 CURRENT ASSETS:

2 Cash

3 Marketable Securities 0

4 Accounts Receivable

5 Less-Estimated Uncollectable & Allowances

6 Receivables From Third Party Payors

7 Pledges And Other Receivables

8 Due From Restricted Funds 0

9 Inventory

10 Prepaid Expenses

11 Current Portion Of Funds Held In Trust 0

12 TOTAL CURRENT ASSETS

13
14 BOARD DESIGNATED ASSETS:
15 Cash 0
16 Marketable Securities 0
17 Other Assets 0
18 TOTAL BOARD DESIGNATED ASSETS: 0
19
20 PROPERTY, PLANT AND EQUIPMENT:
21 Land 15,239,201

22 Land Improvements

23 Buildings

24

25 Fixed Equipment – Other 0
26 Equipment 0

27 Leasehold Improvements 425,606

28 Construction In Progress

29 TOTAL

30 Less Accumulated Depreciation

31 NET PROPERTY, PLANT & EQUIPMENT

32
33 INVESTMENTS AND OTHER ASSETS:
34 Investments In Property, Plant & Equipment 0
35 Less – Accumulated Depreciation 0
36 Other Investments 1,200,000
37 Other Assets 0
38 TOTAL INVESTMENTS & OTHER ASSETS 1,200,000
39
40 INTANGIBLE ASSETS:
41 Goodwill 0
42 Unamortized Loan Costs 0
43 Preopening And Other Organization Costs 0

44 Other Intangible Assets

45 TOTAL INTANGIBLE ASSETS 10,135,573
46 TOTAL ASSETS

DOH – OHPD

BALANCE SHEET – UNRESTRICTED FUND

Hospital: St. Anthony Medical Center, Vila Health System FYE: 12/31/2016

LIABILITIES AND FUND BALANCES-UNRESTRICTED Lic.#: H-037
1 CURRENT LIABILITIES
2 Notes and Loans Payable 0

3 Accounts Payable

4 Accrued Compensation and Related Liabilities

5 Other Accrued Expenses

6 Advances from Third Party Payors 0
7 Payables to Third Party Payors 0
8 Due to Restricted Funds 0
9 Income Taxes Payable 0
10 Other Current Liabilities 0

11 Current Maturities of Long Term Debt 0
12 TOTAL CURRENT LIABILITIES

13
14 DEFERRED CREDITS:
15 Deferred Income Taxes 0
16 Deferred Third Party Revenue 0

17 Other Deferred Credits 0
18 TOTAL DEFERRED CREDITS 0

19
20 LONG TERM DEBT
21 Mortgage Payable 0
22 Construction Loans-Interim Financing 0

23 Notes Payable

24 Capitalized Lease Obligations 0
25 Bonds Payable 0

26 Notes and Loans Payable to Parent

27 Noncurrent Liabilities 0

28 TOTAL

29 Less Current Maturities of Long Term Debt 0
30 TOTAL LONG TERM DEBT 201,467,047

31
32 UNRESTRICTED FUND BALANCE 0
33
34 EQUITY (INVESTOR OWNED)
35 Preferred Stock
36
37 Common Stock
38
39 Additional Paid In Stock 0
40

41 Retained Earnings (Capital Account for Partnership

42 (or Sole Proprietorship)
43
44 Less Treasury Stock

45 TOTAL EQUITY (40,095,696)
46 TOTAL LIABILITIES AND FUND BALANCE OR EQUITY 191,246,229

DOH – OHPD

COMPARISON STATEMENT OF REVENUE & EXPENSE – UNRESTRICTED FUNDS
Hospital: St. Anthony Medical Center, Vila Health System

Lic.#: H-037
1 OPERATING REVENUE:

2 Inpatient Revenue

3 Outpatient Revenue

4 TOTAL PATIENT SERVICES REVENUE

5
6 DEDUCTIONS FROM REVENUE:

7 Provision For Bad Debts

8 Contractual Adjustments

9 Charity and Uncompensated Care

10 Other Adjustments and Allowances 0
11 TOTAL DEDUCTIONS FROM REVENUE

12 NET PATIENT SERVICE REVENUE

13

14 OTHER OPERATING REVENUE
15 Other Operating Revenue

16 Tax Revenues 0
17 TOTAL OTHER OPERATING REVENUE 10,171,428
18 TOTAL OPERATING REVENUE

19

20 OPERATING EXPENSES
21 Salaries and Wages

22 Employee Benefits

23 Professional Fees

24 Supplies

25 Purchased Services – Utilities

26 Purchased Services – Other

27 Depreciation

28 Rentals and Leases

29 Insurance

30 License and Taxes

31 Interest

32 Other Direct Expenses

33 TOTAL OPERATING EXPENSES

34 NET OPERATING REVENUE

35
36 NON-OPERATING REVENUE-NET OF EXPENSES 0
37

38 NET REVENUE BEFORE ITEMS LISTED BELOW 4,720,050

39

40 EXTRAORDINARY ITEM 750,000

41 FEDERAL INCOME TAX 0
42

43 NET REVENUE OR (EXPENSE)

44 EXPLANATION:
45
DOH – OHPD

FS-1 BALANCE SHEET – UNRESTRICTED FUND
	FYE: 12/31/2016
(1,027,622)
32,410,207
3,891,982
(247,989)
1,889,617
8,014,988
1,301,476
38,448,695
1,009,492
122,015,477
Fixed Equipment – Building Service	77,067,373
1,089,603
216,846,752
75,384,791
141,461,961
	10,135,573
	191,246,229
16,230,075
11,777,836
1,866,967
29,874,878
5,296,930
196,170,117
	201,467,047
	(40,095,696)
FYE: 12/31/2016
752,813,180
529,706,918
1,282,520,098
5,083,718
1,010,760,525
2,400,000
1,018,244,243
264,275,855
	10,171,428
274,447,283
88,523,453
25,937,607
9,613,656
46,386,989
3,043,368
22,184,388
17,408,824
4,866,384
5,740,788
18,828,504
18,671,136
8,522,136
269,727,233
	4,720,050
5,470,050

Sheet1

– Surgical Budget

23,123,516

,000

$ 23,123,516

$ 1,876,484

$ 50,000

$ 50,000

FY 2019 – 2020 Budget FY 2019 – 2020 Variance TYD

OPERATING REVENUE:

Inpatient Revenue $ 50,000,000
TOTAL PATIENT SERVICES REVENUE $ 50,000,000

OPERATING EXPENSES

Salaries and Wages $ 23,000,000
Employee Benefits $ 5,750,000
Professional Fees $ 400,000
Supplies $ 10,000,000
Purchased Services – Utilities $ 50,000
Purchased Services – Other $ 50,000
Insurance $ 105,000
License and Taxes $ 40,000
Other Direct Expenses $ 1,500,000
TOTAL OPERATING EXPENSES

$ 40,895,000

NET REVENUE OR (EXPENSE) $ 9,105,000

OPERATING REVENUE:

Inpatient Revenue

$ 50,000,000

TOTAL PATIENT SERVICES REVENUE

OPERATING EXPENSES

Salaries and Wages

$ 23,000,000

Employee Benefits

$ 5,750,000

Professional Fees

$ 400,000

Supplies

$ 10,000,000

Purchased Services – Utilities

$ 50,000

Purchased Services – Other

$ 50,000

Insurance

$ 105,000

License and Taxes

$ 40,000

Other Direct Expenses

$ 1,500,000

TOTAL OPERATING EXPENSES

$ 40,895,000

NET REVENUE OR (EXPENSE) $ 50,000,000

		Medical
Med Surg 8 Month Budget	FY 2019 – 2020 YTD (Jul – Feb)*		FY 2019 – 2020 Budget		FY 2019 – 2020 Variance TYD
		OPERATING REVENUE:
		Inpatient Revenue		$																					$ 50,000		$ 1,876,484
		TOTAL PATIENT SERVICES REVENUE				$ 50,000,000
		OPERATING EXPENSES
		Salaries and Wages	$ 12,157,632			$ 23,000,000	$ 657,632
		Employee Benefits	$ 3,040,408			$ 5,750,000	$ 165,408
		Professional Fees	$ 250,160			$ 400,000	$ 50,160
		Supplies	$ 5,883,497			$ 10,000,000	$ 883,497
		Purchased Services – Utilities	$ 27,456	$ 2,456
		Purchased Services – Other	$ 23,484	$ 1,516
		Insurance	$ 57,315			$ 105,000	$ 4,815
		License and Taxes	$ 21,456			$ 40,000	$ 1,456
		Other Direct Expenses	$ 972,157			$ 1,500,000	$ 222,157
		TOTAL OPERATING EXPENSES	$ 22,433,565			$ 40,895,000	$ 1,986,065
		NET REVENUE OR (EXPENSE)	$ 689,951		$ 9,105,000	$ 3,862,549
* Your budget may vary from the FY 2029-2020 budget given changes you are projecting based on the hospitals experience ov er the last 8 months
Med Surge 12 month Budget 2019-2020	FY 2019 – 2020 Year**
$ – 0
** Your budget may vary from the FY 2029-2020 budget given changes you are projecting based on the hopsitals experience over the last 12 months
Provide the rationale for your projections in the Memo
Med-Surg Budget Fiscal Year 2020-2021	FY 2020 – 2021	FY 2019 – 2020 Budget	Variance (% increase or Decrease)***
$ 46,247,032
$ 24,315,262
$ 6,080,816
$ 500,320
$ 11,766,994
$ 55,092
$ 46,968
$ 114,630
$ 42,912
$ 1,944,314
$ 44,867,310
*** For your project 2020-2021 budget highlight the percent changes from the previous FY, provide a rationale for your decisions in the Memo

Transcript of the VOICEMAIL FROM George Costanza (CFO):

Hi, it’s George. I hear you’re working on a budget for the Med-Surg department for FY 2019. I’d like you to come to the budget meeting this afternoon, because I’m going to be sharing some numbers that are likely to have an impact on your budget. I’ve sent you the year-to-date statements through December, the overall budget for the year, and the year-to-date budget variance for your department. Take a look at them, and bring them with you to the meeting. See you later!

Transcript from BUDGET MEETING:

George C., CFO

Hi, everyone. Thanks for coming. We’ve got some important numbers to go through and a big challenge to respond to, so I think we better get started.
Jerry, Vice President of Operations
That sounds ominous.
Newman, Vice President of Medical Support
Well, can we at least get an idea of how we’re doing year-to-date before you go to the 40,000-foot level?
George
I think you might need to hear this first. Here’s the situation: The hospital has to cut operating expenses by 5 percent for next fiscal year.
Kramer, Director of Clinical Operations
I’m sorry, did you say 5 percent? Operating expenses?
George
That’s right.
Jerry
That’s a big ask. We’re already operating awfully lean.
George
Agreed. But it’s the situation we’re in. I’ll get to the reasons, but based on what I’m going to go over, I just want everyone to keep in mind that we can’t make assumptions we were making before. So let me give you an overview of the budget and the year-to-date numbers, and I think you’ll see why we’re going to have to make those cuts.
Now, last year, for the entire hospital, we assumed that we would see $1.2 billion in total patient revenue. But as you can see, for half the year, we’ve only hit just over $607 million. By this point in the year, we should be over $612 million. So already in terms of total patient revenue, we’ve got a deficit of nearly $5 million that we didn’t expect. The problem is made worse when we see that other operating revenue is also under budget by $1.5 million.
I believe that recent efforts in the billing department coupled with some of the solid work by the c-suite team on physician engagement and external marketing are going to have an impact on the revenue side of things. We’re also currently negotiating with a couple of our primary commercial payers, but those negotiations remain uncertain. All things considered, I’m hoping for about a 5% bump on the revenue side for FY 19. Our operating expenses are fairly close to target so far this year, but given the situation with uncertain revenue, we will need to try to find some additional cost savings opportunities. I want to be reasonably conservative in case market conditions change or negotiations with our payers don’t go as expected.
Newman 
Wow. Well, okay, so that’s the reality. What’s the timeline? How long do we have to make these cuts?
George
Well, implementation is obviously by June 30 since the next fiscal year starts July 1. The board will approve the new budget probably by mid-June, but all the negotiation at the unit and department level will be going on this month. Our first official budget committee meeting is in early May. So I’d suggest getting your ducks in a row within the next week or so.

In your proposal, think through the cuts that are being proposed. Do you simply want to take a ‘salami slice’ cut across all areas of expense? Or, are there areas where it might make more sense to protect while others are more flexible? Since this is a simulation, you won’t know everything that you normally would about the organization, the people involved, etc. However, think through what the second and third order effects are of a budget cut and provide some commentary regarding what other issues might surface and/or may need to be addressed as a result.

Health Care Finance

March 16, 2020

Assignment 3

Assignment #2

Break-even Analysis Due Sunday, March 15th

Should MHCBS invest in a multipurpose Senior Center to expend it service offerings to appeal to the growing senior market in the area?

Details of revenue as well as direct and indirect expenses provided in Announcement; formula’s provided in PowerPoint from March 5th Zoom Meeting

To approve the expansion, the Board of MHCBS has two requirements:

Evidence that the expanded program is a benefit to the community

A break-even analysis that indicates MHCBS can recoup its investment in 5 years

Assumptions
Current fiscal year July 1, 2019 – June 30, 2020
Patient Service Revenue
Projected total hospital patient revenue to be under budget by $10 million
Of the projected $1.2 billion in patient services revenue, approximately 57% of the total projected revenue is for in-patient care; the other 43% is for outpatient revenue
The Medical Surgical Budget reflects only in-patient revenue
Yearly budgeted Medical Surgical Dept. in-patient revenue: $50,000,000
As a percent of the total in-patient revenue: 7%
In-patient revenue for the Dept. in the first 6 months is below budget by approximately $1.9 million – is this likely to increase given the information in the Budget Mtg transcript?
Next Fiscal Year July 1, 2020 – June 30, 2021
Assumptions
Projected total hospital revenue to increase by 5% due to marketing and managed care contract negotiation
When projecting revenue take into consideration that Medical-Surgical Dept. will only see increases relative to in-patient revenue
Overall hospital goal is to decrease total spending by up to 5%
Cuts in expenses may be targeted, not all expense categories need to be decreased

2019 – 2020 Medical-Surgical Budget
6 Month Revenue 2019 – 2020 Budget Revenue FY 2019 – 2020 6 Month Variance
$23,123,516
$50,000,000
$(1,876,484)

6 Month Expenses 2019 – 2020 Budget Expenses FY 2019 Variance
$22,433,565
$40,895,000 $1,986,065

For the first 6 months — Revenue is below budget, expenses exceed the budget

Budget for Fiscal Year 2019 – 2020
Estimate the revenue and expenses for the Medical – Surgical Dept. through the current month of the current fiscal year – July 2019 thru February 2020 (8 Month Budget projections)
Estimate the revenue and expenses for the Medical-Surgical Dept. for the rest of the 2019-2020 fiscal year based on the assumptions provided in the transcript documents (12 Month Budget Projections)
Detailed Excel Spreadsheet with the 2019-2020 yearly budget and explanation of projections in budget Memo
Total in-patient revenue (take into consideration the percent difference between budgeted vs. actual revenue and make adjustments to account for the projected shortfall in revenue)
Total expenses (Highlight specific categories that are projected to be significantly over budget and make any recommended cuts in specific categories of expenses)
In the Memo, discuss changes in projected revenue, and highlight the rationale for any proposed cuts in select expenses
Your projections will vary from the projected 2019 -2020 budget provided to reflect any changes you may make to revenue and expenses based on the information contained in the Budget Meeting Transcript

2020-2021 Fiscal Year Budget
Prepare a Medical Surgical budget for the next fiscal year – July 1, 2020– June 30, 2021
Detailed Excel spreadsheet providing revenue and expenses by category and discuss revenue and expense projections in budget Memo
Total in-patient revenue (Take into consideration the total projected revenue increases due to contracting and marketing that are projected to benefit the whole hospital – remember the Medical-Surgical budget only includes in-patient revenue)
Detailed Expenses by category
Highlight any percent expense increases and reductions based on the 2019 – 2020 projected yearly budget by category and explain rationale in budget Memo

Assignment Deliverables
Excel Spreadsheets
Projected budget for Fiscal Year 2019 through February 2020 (8 Month Budget)
Projected remaining Fiscal Year 2019-2020 Budget (12 Month Budget)
Revenue and Expenses
Note: Your projections for the yearly budget will differ if you make any changes to the revenue and expenses given the Budget Meeting Transcript
Projected Fiscal Year 2020-2021 Budget
Revenue and Expenses (12 Month Budget)
Budget Memo
Explain rationale for any increases or shortfalls in revenue and the rationale behind any cuts in specific expense categories
Reminder – the fiscal year for this hospital is July 1st thru June 30th

Assignment Due Dates
The due date for submission of Assignment 3 is March 22nd
The due date for submission of Assignment 4 is March 29th

Assignment #4
Using the OIG website (https://oig.hhs.gov/) or another of your choosing, select a real-time healthcare fraud news report from your local area to feature within your paper to educate the organization on the various case(s), the importance of healthcare finance compliance practices and the potential criminal and monetary fines that can be imposed on the individual and/or organization from the case. 
Develop a 3-5 page white paper that provides a succinct overview of the specific healthcare finance fraud committed including the details specified at the end of the course syllabus.
Due Sunday, March 29th

You are the administrator of the medical – surgical department at UMUC Health. Review the transcripts from the budget meeting and recent voicemails from your CFO and, using the available information and resources, develop an operating budget for your department. 

Your budget should include a 2-4 page document with an accompanying Excel spreadsheet (available in the classroom) that:

· Provides the revenue and expenses through the current month of the current year.

· Estimates the revenue and expenses for the rest of the current fiscal year based on the assumptions provided in the transcript documents.

· Prepares a budget for the next fiscal year.

Note: See Course Announcements for specific data to complete the analysis.