1. Review the attached budget report that includes current actuals, current budget, the annualized results based on this years YTD, and the prior years actuals to use for trending purposes. Build next years budget based on the following assumptions and explain why you set the budget category amounts where you set them, use the checklist for building a budget in chapter 15 for help:
   1. The volumes, units of service (UOS), will increase by 5%, both Inpatient days and Outpatient procedures
   2. The ratio of revenue per UOS will decrease by 1%
   3. The ratio of labor to the UOS, productivity target, will stay the same
   4. The labor costs will increase by 2%
   5. The supply costs will increase by 2%

General Hospital Budget Report-June 2016					General Hospital Budget YTD				General Hospiutal Budget Annualized 2016				General Hospital Budget 2015
	Current Month				Year To Date Data-2016				Annualized Data-2016				2015 Data
Category	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance
Revenue
Inpatient Volume-Days	4,000	3,500	500	14.3%	24,000	21,000	3,000	14.3%	48,000	42,000	6,000	14.3%	43,200	39,900	3,300	8.3%
Inpatinet Revenue	$2,400,000	$2,100,000	$300,000	14.3%	$14,400,000	$12,600,000	$1,800,000	14.3%	$28,800,000	$25,200,000	$3,600,000	14.3%	$25,920,000	$23,940,000	$1,980,000	8.3%
Outpatient Volume-Procedures	1,100	1,000	100	10.0%	6,600	6,000	600	10.0%	13,200	12,000	1,200	10.0%	11,880	11,400	480	4.2%
Outpatient Revenue	$286,000	$250,000	$36,000	14.4%	$1,716,000	$1,500,000	$216,000	14.4%	$3,432,000	$3,000,000	$432,000	14.4%	$3,088,800	$2,850,000	$238,800	8.4%
Total Revenue	$2,686,000	$2,350,000	$336,000	14.3%	$16,116,000	$14,100,000	$2,016,000	14.3%	$32,232,000	$28,200,000	$4,032,000	14.3%	$29,008,800	$26,790,000	$2,218,800	8.3%
Operating Expenses
Inpatient Labor	$1,500,000	$1,225,000	$275,000	22.4%	$9,000,000	$7,350,000	$1,650,000	22.4%	$18,000,000	$14,700,000	$3,300,000	22.4%	$16,200,000	$13,965,000	$2,235,000	16.0%
Inpatient Supplies	$500,000	$525,000	-$25,000	-4.8%	$3,000,000	$3,150,000	-$150,000	-4.8%	$6,000,000	$6,300,000	-$300,000	-4.8%	$5,400,000	$5,985,000	-$585,000	-9.8%
Total Inpatient Expenses	$2,000,000	$1,750,000	$250,000	14.3%	$12,000,000	$10,500,000	$1,500,000	14.3%	$24,000,000	$21,000,000	$3,000,000	14.3%	$21,600,000	$19,950,000	$1,650,000	8.3%
Outpatient Labor	$137,500	$150,000	-$12,500	-8.3%	$825,000	$900,000	-$75,000	-8.3%	$1,650,000	$1,800,000	-$150,000	-8.3%	$1,485,000	$1,710,000	-$225,000	-13.2%
Outpatient Supplies	$55,000	$50,000	$5,000	10.0%	$330,000	$300,000	$30,000	10.0%	$660,000	$600,000	$60,000	10.0%	$594,000	$570,000	$24,000	4.2%
Total Outpatient Exepenses	$192,500	$200,000	-$7,500	-3.8%	$1,155,000	$1,200,000	-$45,000	-3.8%	$2,310,000	$2,400,000	-$90,000	-3.8%	$2,079,000	$2,280,000	-$201,000	-8.8%
Total Operating Expenses	$2,192,500	$1,950,000	$242,500	12.4%	$13,155,000	$11,700,000	$1,455,000	12.4%	$26,310,000	$23,400,000	$2,910,000	12.4%	$23,679,000	$22,230,000	$1,449,000	6.5%
Net Revenue	$493,500	$400,000	$93,500	23.4%	$2,961,000	$2,400,000	$561,000	23.4%	$5,922,000	$4,800,000	$1,122,000	23.4%	$5,329,800	$4,560,000	$769,800	16.9%