Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows:493494
As to the initial budget:• The budget anticipated 30,000 inpatient days this year at an average of $650 revenue per day. • Inpatient expenses were budgeted at $600 per patient day. • The budget anticipated 10,000 outpatient visits this year at an average of $400 revenue per visit. • Outpatient expenses were budgeted at $380 per visit.
As to the actual results:• Assume that only 27,000, or 90%, of the inpatient days are going to actually be achieved for the year. • The average revenue of $650 per day will be achieved for these 270,000 inpatient days. • The outpatient visits will actually amount to 110%, or 11,000 for the year. • The average revenue of $400 per visit will be achieved for these 11,000 visits. • Further assume that, due to the heroic efforts of the Chief Financial Officer, the actual inpatient expenses will amount to $11,600,000 and the actual outpatient expenses will amount to $4,000,000.
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