The objective is to create a line graph for the following information:
Volumes projected in this area for the first year are 1275 patient days (or visits). With physician support and effective marketing, it is expected that the volume will increase 10% the second year, 14% the third year, and 20% the fourth year. The financial goal of this project is to break even by the end of the third year of operations.
For payroll, merit increases and overtime hours should be computed at 5% each. Use the salaries and benefit data from you’re your current knowledge of your local market or assume average hourly rate for the Registered Nurse is $28/hour and assistive personnel hourly rates at $9/hour. Benefit costs can be estimated at 25% of hourly rates.
Expected revenue is calculated at $4864 per case for the first year. The payer mix for this facility is: Medicare 37.9%; Medicaid 4.5%; Managed Care (HMO/PPO) 38.8%; Private Pay 6%; other insurance 10.6%; Worker’s Comp 2.2%.
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