CHAPTER $8$: FINANCIAL PLANNING & BUDGETING

Homework Problem $3\mathrm{.}4$

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

Total FFS Visits Volume $80,000$ visits

Payer Mix:

Blue Cross $55\%$

Highmark $45\%$

Reimbursement Rates:

Blue Cross $$55$ per visit

Highmark $$60$ per visit

Variable Costs

Resource Inputs:

Labor $0\mathrm{.}8$ hours per visit

Supplies $1\mathrm{.}4$ units per visit

Resource Input Prices:

Labor $$25\mathrm{.}00$ per hour

Supplies $$1\mathrm{.}50$ per unit

Fixed Costs $$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