Building budget for the next fiscal year

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Reference no: EM131900673

Flexible Budgeting

Rostom Hospital is building a budget for the next fiscal year. All patients fall into three DRGs, DRG 129, Major head and neck procedures (DRG weight = 2.3284), 243, Cardiac pacemaker implant (2.6695), and 935, Non-extensive burns (1.4717). The expected volumes for November 2017 are 50 patients in DRG 129, 30 in 243, and 20 in 935. Only two services are provided, nursing and radiology. Nursing bases its budget on patient days and radiology bases its budget on x-ray RVUs (relative value units). Build the monthly budget for both departments information below.

Budgeted

DRG Patients ALOS Pat. Days RVUs per case Total RVUs

129 50 5.4 _______ 5.0 _______

243 30 4.5 _______ 4.0 _______

935 20 5.0 _______ 2.0 _______

Total _______ _______

Nursing Budget Radiology Budget

Fixed Labor $4,000/mo _______ $10,000/mo _______

Variable Labor $100/day _______ $30/RVU _______

Supplies $24/day _______ $18/RVU _______

Depreciation $20,000/mo _______ $10,000/mo _______

Prof. Fees -0- __0 ___ $40/RVU _______

Total _______ _______

Reference no: EM131900673

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