$1$ CHAPTER $8$: FINANCIAL PLANNING & BUDGETING $2$ Homework Problem $3\mathrm{.}434$ Chelsea Clinic projected the following budget information for $2021$: $567$ Payer Mix: $8$ Blue Cross $9$ Highmark $10$ Reimbursement Rates: $11$ Blue Cross $12$ Highmark $13$ Variable Costs $14$ Resource Inputs: $15$ Labor $16$ Supplies $17$ Resource Input Prices: $18$ Labor $19$ Supplies $20$ Fixed Costs Total FFS Visits Volume $80,000$ visits $55\%45\%$ $$55$ per visit $$60$ per visit $0\mathrm{.}8$ hours per visit $1\mathrm{.}4$ units per visit $$25\mathrm{.}00$ per hour $$1\mathrm{.}50$ per unit $$950,000$Using Exhibit $8\mathrm{.}3$ as a guide $($excluding the capitated numbers since payers in this homework problem are all FFS$)$ construct Chelsea Clinic's operating budget for $2021,$ including projections for volume, revenues, costs, and a P&L statement

CHAPTER $8$: FINANCIAL PLANNING & BUDGETING

Homework Problem $3\mathrm{.}4$

Chelsea Clinic projected the following budget information for $2021$:

$\backslash$table$[[$Total FFS Visits Volume,$80000\mathrm{.}00,$visits,,$],[$Payer Mix:,,,# of blue cross visits,$44000],[$Blue Cross,$0\mathrm{.}55,$L$,$# of highmark visits,$36000]]$

Highmark

$0\mathrm{.}45$

Reimbursement Rates:

$\backslash$table$[[$Blue Cross,$55\mathrm{.}00$ per visit$],[$Highmark$,60\mathrm{.}00$ per visit$]]$

Variable Costs

Resource Inputs:

Labor $0\mathrm{.}80$ hours per visit

Supplies

$1\mathrm{.}40$ units per visit

Resource Input Prices:

Labor

Supplies

Fixed Costs

$950000\mathrm{.}00$

Using Exhibit $8\mathrm{.}3$ as a guide $($excluding the capitated numbers since payers in this homework problem are all FFS$)$ construct Chelsea Clinic's operating budget for $2021,$ including projections for volume, revenues, costs, and a P&L statement

$\backslash$table$[[,$Blue Cross,Highmark$],[$Revenue$,2420000,2160000],[$Total Revenue $($A$),,],[,2420000,2160000],[$Labor cost$,,],[$Supplies cost$,880000,720000]]$

Total variable cost

Fixed cost

Total cost$(B)$

Net profit $($A$-$B$)$