Reference no: EM131421679
Assignment
Established in 1977, Krona Community Hospital is a 60-bed, acute care hospital located in the heart of Banconota County. With a staff of nearly 100 physicians and specialists, 400 employees, and 75 volunteers, they offer a full range of health care services. They are accredited by The Joint Commission.
Nouveau Health, a private, not-for-profit health care chain, took over the management of Krona Hospital. Last year, state officials began to discuss Nouveau's proposal to build a new, replacement hospital in Banconota County. The new facility would have 74 acute care beds, four observation rooms, four surgical operating rooms, one c-section room, a 24-hour emergency department, a maternity center, an intensive care unit, and extensive support services, including physical therapy and cardiac rehabilitation. All patient rooms would be private.
You are a staff member in the finance department at Nouveau Health, whose sole responsibility is to advance the success of the organization through assisting in planning, forecasting, and finance management.
Your Key Assignment Draft is designed to help you prepare for the presentation in Phase 5. The chief executive officer (CEO) of Krona has asked that you complete the following:
• Prepare next year's financial plan and operational budget.
o Note: Keep in mind that the budget you created for your Phase 2 Individual Project did not take into account the growth of the new facility. The CEO has asked that you expand that budget and provide a finalized budget that will take into account the new services offered. The CEO has stated that there is $3 million that you can incorporate into the budget for additional staffing, services, maintenance, and so forth.
• Make sure the budget reflects the following:
o Increase in revenue reimbursement
o Allocation for the proposed improvements
o Increase in salaries
Be sure to discuss the following areas:
• Funding sources
• Your methodology in revenue forecasting
• How the new services will impact revenue
• Fixed and variable costs
• Project inpatient and outpatient visits based on current trends
Budget
|
KRONA HOSPITAL
OPERATING BUDGET FOR 2017
|
|
Revenues
|
|
Inpatient
|
$ 27,500,000
|
|
Outpatient
|
17,250,000
|
|
Emergency Room
|
10,000,000
|
|
Laboratory
|
5,000,000
|
|
Pharmacy
|
1,575,000
|
|
Home Health and Hospice
|
1,725,000
|
|
Ambulance Services
|
950,000
|
|
Substance Abuse
|
250,000
|
|
Other
|
850,000
|
|
Subtotal
|
$ 65,100,000
|
|
Less Chartiy Care
|
18,000,000
|
|
Net Revenues
|
$ 47,100,000
|
|
Expenses
|
|
Payroll (including nursing salaries)
|
$ 13,750,000
|
|
Benefits
|
3,300,000
|
|
Contract Labor
|
100,000
|
|
Insurance
|
300,000
|
|
General Services (laundary, security, etc)
|
3,000,000
|
|
Depreciation
|
1,500,000
|
|
Interest Expense
|
300,000
|
|
Professional Services
|
10,000,000
|
|
Total Operating Expenses
|
$ 32,250,000
|
|
Net Income
|
$ 14,850,000
|
|
Hostile climates are associated with economic stagnation
: Mexicans view the foreign policy of President Monroe generally less favorable than do Americans. Why? Hostile climates are associated with economic stagnation.
|
|
What are the contextual factors of country selected
: What are the contextual factors (cultural environment, institutional environment) of country selected? What are the firm-specific factors (strategy and structure, corporate culture, physical firm size, maturity stage of Hyundai Motor India) of the..
|
|
Which type of error might customers consider more serious
: Which type of error would the factory owner consider more serious?- Which type of error might customers consider more serious?
|
|
How you would segment the market to conduct research
: Determine how you would segment the market to conduct research for short term health care Explain your rationale. Referring to the same health care product or service, determine the most effective markets for short term health care . Explain your rat..
|
|
Prepare next years financial plan and operational budget
: Established in 1977, Krona Community Hospital is a 60-bed, acute care hospital located in the heart of Banconota County. Prepare next year's financial plan and operational budget.
|
|
What action will be taken against the baby sitter
: If a baby sitter mistreats the children she is taking care of. The parents caught her when she was punishing a 4 year old girl by making her sit on the toilet for 1 hour. What action will be taken against the baby sitter? What laws will be applied if..
|
|
The responsibility of the store to implement this regulation
: Fire regulations usually require a store to have a fire extinguisher. Inspectors will check from time to time to confirm that the store complies with the regulation. If it fails to comply, the regulators may impose a fine. What are the liability issu..
|
|
Is the alternative hypothesis one sided or two sided
: One sided or two? In each of the following situations, is the alternative hypothesis one-sided or two-sided? What are the hypotheses?
|
|
About the learning curves
: You own a car body/paint repair shop. You have been asked to submit a bid to repair ten (10) identical cars from a dealer lot that were all similarly damaged by a hail storm. If there is no learning curve, what is the lowest total bid (for 10 cars) y..
|