HM2010: Week 1 Assignment Worksheet Type your name here Before you begin, save this document to your computer. You will need to submit your answers in the area indicated below. DIRECTIONS: 1. Read pages 1-3, 94-107 and 122 of your Revenue Management Manual textbook. 2. Answer the following all questions in this 3 part assignment. 3. Please remember to SAVE this document to your computer or \"My Documents\" on your computer. 4. Submit the saved file to your \"Assignment Drop Box\". Tips for answering questions: Read the question more than twice, if necessary, to make sure you understand what you are asked to do. Find the key words in each question and construct your answer to address those key words or phrases of the question. Your answer should be organized and to the point. Keep your sentences short and simple. Pay attention to the answer length requirements (if stated). If necessary, go the extra mile and give examples or show your work to illustrate your point. Before you continue: Did you save this document to your computer? o No: Please save this document to your computer now. o Yes: Great! Let's get to work! (See next page for part 1) 1 HM2010: Week 1 Assignment Worksheet PART 1: Net Revenue per Patient Using the Patient Cost Analysis Form in the Appendix from your "Revenue Management Manual" text (Form A26), calculate your current costs per patient using the following information. Total Number of Patients Total Expenses Fixed Expenses Total Annual Revenue 16,245 $568,758 $389,600 $1,090,800 10 points What is the Net Revenue per patient? Directions to complete Question 1: TIP: Review page 98 in the Revenue Management Manual Answer: Line 1 Line 2 Line 3 Line 4 Total number of Patients Total Expenses Fixed Expenses Total Patient Expenses = Total Expenses (Line 2) minus Fixed Expenses (Line 3): round to the nearest dollar Total Annual Revenue = Total Receipts Gross Revenue per Patient = Total Annual Revenue (Line 5) divided by Total number of Patients (Line 1): round to the nearest dollar Total Cost per Patient = Total Expenses (Line 2) divided by Total number of Patients (Line 1): round to the nearest dollar Net Revenue per Patient = Gross Revenue per Patient (Line 6) minus Total Cost per Patient (Line 7): round to the nearest dollar Line 5 Line 6 Line 7 Line 8 16,245 $ 568, 758 $ 389, 600 179,158 Line 1 Line 2 Line 3 Line 4 $ 1, 090, 800 67,100 Line 5 Line 6 35,000 Line 7 32,100 SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 2) 2 Line 8 HM2010: Week 1 Assignment Worksheet PART 2: Reviewing the Budget Use the Operating Budget A (Tab \"Operating Budget A\" in the Operating_Budget_11-11-14.xls file. Compare the month of January to the Month of June. 30 points A. Were these months overbudget or under-budget and why? B. As an office manager what do you see that can be listed as issues in these months? Directions to complete Question 2: Use short responses, in complete sentences with proper grammar and spelling Your answer should be no less than 4 to 8 sentences. TIP for Calculations 1) Use the \"Operating Budget A\". 2) Review \"Preparing a Budget\" in the Highlights/Summary in Week one weekly materials 3) Compare the months of January to the month of June (cells shaded in yellow) 4) Answer (A): Were these months over budget or under budget and why? 5) Answer (B): As an office manager what do you see are the issues in these months? Example: Marketing increased significantly to $16,070.00 in April from $4,778 in January and March. Answer (A): They were under-budget because they had 410.74 left over. Answer (B): SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT (See next page for part 3) 3 HM2010: Week 1 Assignment Worksheet PART 3: Preparing a Budget for 2012 Use Budget C (located on the 3rd tab \"Budget C\" in the Operating_Budget_11-1114.xls file.). Make the following adjustments and share your results: A. Clinic Revenue is expected to grow by 3% due to the signing of a new managed care contract. What is the new (monthly) dollar amount for patient revenue due to the 3% increase? B. The cost of expenses is expected to increase to 1.5%. What is the new (monthly) dollar amount for the cost of expenses? 35 points C. A new roof is needed which will cost $50,000. Prepare a new 12-month budget to show the 3% growth in patient revenue, the 1.5% cost of expenses and the cost of the new roof. You can use MS Excel, the 5th tab of the Operating_Budget_11-11-14.xls file titled \"YOUR PART 3 ASSIGNMENT HERE\"; OR, you can use MS Word or WordPad. TIP for Calculations 1) Use Budget C and make the following adjustments: a. Clinic Revenue is expected to grow by 3% due to the signing of a new managed care contract = (Total Clinic Revenue X 3%) b. Cost of expenses is expected to increase to 1.5% (Total Expenses X 1.5%) 2) A new roof is needed which will cost $50,000 (divide this amount over a period of 12 month to get the amount per month then add the total amount of the roof to the Total expenses to get your (new) overall Total Expenses) SEE \"PART 3 EXAMPLE BUDGET D\". 3) NOTE: Be sure to add the amount that reflects the 3% growth in clinic revenue and the 1.5% increase in total expenses, along with your cost of the new roof. SEE \"PART 3 EXAMPLE BUDGET D\". 4) (Please Review the Budgeting Highlights/ Summary and Page 94-95 of the Revenue Management Manual Answer: Type your answer here 4 HM2010: Week 1 Assignment Worksheet SAVE YOUR ANSWERS . . . .SAVE YOUR DOCUMENT BEFORE YOU SUBMIT THIS ASSIGNMENT You will earn additional points if you: correctly submit the worksheet to the assignment dropbox. use proper sentence structure, grammar and spelling. 80 points TOTAL POINTS NEED MORE HELP? Visit the STUDENT SUCCESS CENTER! Contact your INSTRUCTOR, ADVISOR, ACADEMIC COACH 5 5 points