Professor instrcutions and requirments:
Create the required tables in Excel
Discussion post 1 in excel spreadsheet Health service finance
Create the required table in Excel and use Excel formulas to complete this GHA.
The idea of this assignment is that since we cannot tell the future we often make assumptions of what is likely to happen. When we make assumptions, we tend to have a realistic idea of what could happen, a sense of a ‘worse case’ scenario, and a sense of a ‘best case’ scenario. Looking at these three options helps us anticipate future need and plan accordingly.
A doctor’s office is thinking about adding a new service line to their practice. They ask the practice manager to prepare a three-level volume forecast as a first step in their decision making. Determine the base level revenue, best case revenue, and worse case revenue.
You might find it helpful to use this format:
Best: best volume per year x rate per procedure = best revenue per year
Base: base volume per year x rate per procedure = base revenue per year
Worse: worse volume per year x rate per procedure = worse revenue per year
Assumptions:
The practice will earn $300 for each patient that comes in for the new service.
For the base level (most likely) revenue forecast, assume 1,000 potential procedures per year.
It’s possible the new service will be a big hit! For the best-case revenue forecast, assume an increase in volume (over the base level) of 250 procedures annually.
It’s possible the practice might encounter some problems with insurance coverage. For the worse case revenue forecast, assume a decrease in volume (below the base level) of 500 procedures annually.
Discusson post 2 in excel spreadsheet health service finance
Using the following data, create a table in Excel that uses Excel formulas to calculate the volume (patient days) and cost (expense) variances for the data presented below.
Is the overage due primarily to the volume increase, a cost increase, or both? Explain the rationale for your response.
Expense
2022
Actual
2022
Budget
Salary and Wages 175,200 169,000
Fringe Benefits 69,200 68,000
Supplies 126,000 124,000
Depreciation 25,000 24,000
Interest 8,400 9,000
Other 109,300 110,000
Total Expenses 513,100 504,000
Patient Days 47,700 47,200
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