Chapter $8$ Assignment

SAMPLE BUDGET: HEALTH INFORMATION SERVICE

Note: The figures are only examples. Actual rates will vary geographically and over time. The sample budget has been revised from that appearing in the previous edition to reflect current job titles, categories, and wages.

Background planning notes for upcoming fiscal year:

Department is in final stages of migration from hard copy records to electronic health records. Planned completion is in $18$ months $($all $12$ months of upcoming budget year plus $6$ months of the following budget year$).$

Starting July $1,$ work order charges are $$200\mathrm{.}00$ for initial response to work order request. On average, the department has had $14$ requests per budget year.

The department plans to sponsor an on$-$site meeting of the regional professional association and a week$-$long promotion effort regarding health information management, privacy, and security. Costs associated with this plan include food, parking, printing $($in house$),$ and promotional$/$commemorative items.

Books, software, and journal subscription line items include the costs for updates of coding, billing, and accrediting resources.

Budget premises:

Fiscal year: July $1-$June $30$

Workweek: $40$ hours$/$week; $2,080$ hours$/$year per FTE

Cost of living increase: $5\%$ of current base rate $($see Table $8-3$ for detailed cost of living calculations by position title$)$

Effective date of cost of living increase: January $1$

Overtime rate: time and a half, based on current base for employee

Holiday pay: regular base rate $($for employees who work on a scheduled holiday: double time, calculated on current base for each employee$)$

Temporary agency rate: average rate is $$\frac{13}{?}$ hour for clerical workers; no fringe benefits given

Sick pay: calculated on each employee's current base

Fringe benefits: $29\%$ of total wages and salaries for the department; $29\%$ for each individual employee