The University of Hospital is a 175-bed community hospital serving a rural area of Pennsylvania. It is located 30 miles from a large metropolitan…

The University of Hospital is a 175-bed community hospital serving a rural area of Pennsylvania. It is located 30 miles from a large metropolitan area and has a fine reputation.

The hospital is fully accredited and is licensed by the state. The hospital offers general medical/surgical services with a bed complement as follows:

             Medical/Surgical                    130

             Pediatrics                                20

             ICCU                                      10

                        OB                                          15

                       Total                                       175

The hospital has a 10 bed Ambulatory Surgical Unit. The hospital is in sound financial condition with a physical plant that is 15 years old and in excellent condition.

The hospital has just recruited a new General Surgeon and a Internist. These recruitment efforts filled two major needs of the institution. It is estimated that in today’s current marketplace surgeons are expected to increase inpatient admissions to a acute care community hospital by 1.5% and Internists by .5%.

 It is expected that admission volumes will increase with the addition of these two new physicians.

The community population has been relatively stable over the past 10 years and there is no expectation that this trend will change.

 The percentage breakdown of patients by payor mix is as follows:

             Medicare                                51%

                       Blue Cross                              16%

                       Medical Asst                          08%

                       HMO                                      10%

                       Commercial INS                    07%

                       Other                                      05%

                        Self Pay                                  03%

                       Total                                     100%

 The population breakdown is as follows:

             Under 19                   25%

                       19 to 64                      44%

                       65 and over                31%

The primary initiative or goal for the 2014-2015 fiscal year is the establishment of a 15-bed Psychiatric Unit. This new unit will be infused into the current bed complement with no increase in the 175 bed count expected. This unit is expected to occupy space for 15 beds currently not set up and staffed at the hospital.

It is expected that during the year there will be a slight increase in inpatient services as a result of the Psychiatric Unit. The hospital laboratory is buying two new pieces of equipment at a cost of $400,000 that will allow them to do 35% more tests in house rather than send these tests out to a reference lab. It is also expected that the Radiology Department is purchasing a new CT scanner that is expected to increase current radiology volumes by 3.25%.

The budget calendar and target dates for budget completion are the same in this year’s budget as in years past.

In the new fiscal year, the hospital plans to:

  1. Establish a separate distinct 15-bed inpatient psychiatric unit.
  2. Install new equipment in the laboratory to enable the hospital to do 35% more tests in-house rather than send them to a reference lab.
  3. Recruit a general surgeon and a Internist.
  4. Purchase an additional CT scanner which is expected to increase current radiology volumes by 3.25%.

 THREE DEPARTMENTS ARE INVOLVED IN OUR BUDGET EXERCISE. THEY ARE NURSING, LABORATORY, PHARMACY AND OUTPATIENT/AMBULATORY SERVICES.

STATISTICAL DATA

                                                          2012               2013               2014               2015

Admissions In Pt (Nursing)           7,395               7,400               7,370

Laboratory Test                   399,330           411,810           421,564

Pharmacy Rx                    99,832             100,011           99,642

Radiology Exams                 68,222             69,124             68,950

Laboratory spent $79,866 on supplies in 2012. They spent $86,480 in 2013 and $96,959 in 2014. These figures represent the cost of supplies to do tests at the hospital. The hospital spent $122,000 to perform tests outside the hospital last year. The cost of lab supplies is expected to increase 10% in the next budget year as a result of inflation. The hospital also had supplies costs in Radiology of $ 395,205 in 2012, $405,222 in 2013 and 410,100 in 2014. There is expected to be an industry wide increase in radiology supplies costs of 6.5% in the next budget year.

LABORATORY  EXPENSES

                              2012          2013         2014

Supplies                     $79,866       $86,480     $96,959

 RADIOLOGY EXPENSES

Supplies                     $395,205       $405,222    $410,100

NURSING JOB CLASSIFICATION LISTING

POSITION TITLE                 AUTHORIZED POSITIONS

Director of Nursing                1 ft

Assistant Director                 2 ft

Nurse Supervisors                 4 ft

Head Nurse                     8 ft

Staff Nurses RN                  80 ft

                              15 pt

LPN                           25 ft

                              10 pt

Nurses Aides                    10 ft

Orderlies                        6 ft

Unit Desk Clerks                  6 ft

                               4 pt

Secretary                        1 ft

LABORATORY

Department Head                  1 ft

Med Technologist                  12 ft

                                2 pt

Lab Tech                         4 ft

Lab Assistant                     2 ft

Secretary                        1 ft

PARIENT REVENUE

Gross Revenue Projected for the 2014-2015 budget year is as follows:

 In Patient      $30,675,000

 Out Patient    $36,878,000

  Total         $67,553,000

 Current Reimbursement Formulas:

                       In Patient                                Out Patient

 Medicare               $5760/case                             38% of Charge

 HMO                  $1215.00/pat day          31% of Charge

 Other Insurance          $7655.00/discharge                  42.5% of Charge

 Expected length of stay (LOS) in 2015 is 3.4