Prior Year Actual Budget Actual Total Patient Days 8,395 8,760 9,125 Gross Charg

Question

Prior Year Actual Budget Actual Total Patient Days 8,395 8,760 9,125 Gross Charges $12,592,500 $13,140,000 $13,003,125 Direct Expense Management Salaries $112,500 $111,750 $108,000 Direct Nursing (worked) 2,193,180 2,268,884 2,053,125 Direct Nursing (non-productive) 437,675 444,392 428,141 Direct support (worked) 319,010 340,326 299,063 Direct support (non-productive) 58,960 64,608 60,896 Total Direct Labor 3,121,325 3,229,960 2,949,225 Employee Benefits 998,824 1,027,127 855,275 Total Compensation and Benefits 4,120,149 4,257,087 3,804,500 Other Operating Expense Supplies 1,049,375 919,800 903,375 Drugs 209,875 210,240 200,750 Medical Director 25,000 24,000 22,000 Total Other Operating Expense 1,284,250 1,154,040 1,126,125 Total Operating Expense $5,404,399 $5,411,127 $4,930,625 Contribution Margin $7,188,101 $7,728,873 $8,072,500 Hours Direct Nursing (worked) 79,752 81,468 82,125 Direct Nursing (non-productive) 17,507 17,883 18,027 Direct support (worked) 16,790 18,396 17,337 Direct support (non-productive) 3,685 4,038 3,806 How many Nursing FTE's are there? 1. What is the percentage of non-worked time for nursing? 2. What is the percentage of non-worked time for support? 3. What is the percentage increase for supplies actual vs. budget vs. prior year 4. What is the percentage increase for supplies per patient day actual vs. budget vs. prior year 5. What caused the contribution margin to go down so much?

Explanation / Answer

a) Actual vs Budget - Decrease - (919800-1049375)/1049375 = 12%

b) Actual vs Prior year - Increase - (919800-903375)/903375 = 2%

Per Patient days supplies: Budget: 1049375/8395 = 125; Actual: 919800/8760 = 105; Prior Year: 903,375/9125 = 99

Actual vs Budget: (105-125)/125 = 16% decrease

Actual vs prior year: (105-99)/99 = 6% Increase

down so much?

Contribution per patient day is 882 (7728873/8760) vs 884 (8072500/9125). Hence the reduction in per patient day contribution is less 0.27% ie (882-884)/884. The total contribution reduction is due to reduction in patient days which is 8760 in current year as compared to 9125 in the prior year.

Answers as above - please let me know if further clarification is needed.

How many Nursing FTE's are there? 1. What is the percentage of non-worked time for nursing? 17883/(81468+17883) = 18% 2. What is the percentage of non-worked time for support? 4038/(18396+4038) = 18% 3. What is the percentage increase for supplies actual vs. budget vs. prior year

a) Actual vs Budget - Decrease - (919800-1049375)/1049375 = 12%

b) Actual vs Prior year - Increase - (919800-903375)/903375 = 2%

4. What is the percentage increase for supplies per patient day actual vs. budget vs. prior year

Per Patient days supplies: Budget: 1049375/8395 = 125; Actual: 919800/8760 = 105; Prior Year: 903,375/9125 = 99

Actual vs Budget: (105-125)/125 = 16% decrease

Actual vs prior year: (105-99)/99 = 6% Increase

5. What caused the contribution margin to go

down so much?

Contribution per patient day is 882 (7728873/8760) vs 884 (8072500/9125). Hence the reduction in per patient day contribution is less 0.27% ie (882-884)/884. The total contribution reduction is due to reduction in patient days which is 8760 in current year as compared to 9125 in the prior year.

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