It is January 2, 2012 and you have started your first day of work as the Practice Administrator for the Tri-Cities Geriatric Center (a physician practice serving older adults). Your first job is to project a budget for calendar year 2012. In gathering information for this task, you come across budgets for the past 3 years. However, the former Director did not complete budget worksheets (maybe the reason he was fired), so you don’t have complete information.
Complete the CY 2009, 2010, and 2011 budgets (Table 1a). 2 points
CY 2009 CY2010 CY2011
Number of visits 12,000 12,120 12,241
Private insurance visits 9,793
TennCare visits 2,400 2,424 Net Revenue $557,520 $563,090
Private revenue $480,000 $484,800 TennCare revenue $72,000 $73,440
Expenses Salaries and wages $134,933 $136,283 $137,644
Physician fees $179,512 $181,307 $183,119
Malpractice insurance $32,013 $32,333 $32,656
Travel and education $4,488 $4,533 $4,578
General insurance $8,377 $8,461 $8,546
Utilities $12,267 $12,389 $12,513
Equipment and lease $1,496 $1,511 $1,526
Other operating expenses $89,756 $90,654 $91,559
Total Operating Expenses $462,842 $467,471 $472,141
Net profit (loss)