Reference no: EM13889849

Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows: As to the initial budget: The budget anticipated 30,000 inpatient days this year at an average of $650 revenue per day.

• Inpatient expenses were budgeted at $600 per patient day.

• The budget anticipated 10,000 outpatient visits this year at an average of $400 revenue per visit.

• Outpatient expenses were budgeted at $380 per visit. As to the actual results:

• Assume that only 27,000, or 90 percent, of the inpatient days are going to actually be achieved for the year.