Budget Development And Analysis Essay Assignment Paper

Get nursing paper writing help on Budget Development And Analysis Essay Assignment Paper from Nursing Academic Writers

Budget Development And Analysis Essay Assignment Paper

BUDGET DEVELOPMENT AND ANALYSIS

The budget narrative should be seven pages.
Be sure to give me excel worksheets.
The Assignment
You are the Budget Director for Alamo Hospice a mid-size hospice organization. You will develop a comprehensive budget and create the associated performance story for Next Year that describes the results the organization is planning to produce. Your budget should support your organizational goals and objectives. You will develop schedules that will enable you to present the budget to the Board of Directors for Approval. You will be given a set of data for the estimated Current Year (an extrapolated annualized amount), as well as historical data from 1 Year Ago (Actual data) and 2 Years Ago (Actual Data). You will develop the budgeted financial and statistical information for the Next Year that utilizes the historical information as a basis. The accompanying Excel spreadsheet will provide you a template for development of the key information. You will be asked to develop and defend assumptions related to the development of the budget.
PLEASE INCLUDE THE EXCEL WORKSHEET WHEN YOU TURN IN YOUR PROJECT.

a.Most budget processes start with making estimates of volume. Read the narrative in this document about volume and enter your estimates into the assumptions tab on the Excel spreadsheet. Your volume numbers will drive your financial performance.
b.Read the narrative in this document about Revenue and enter your estimates in the assumptions tab on the Excel spreadsheet. You will be asked to estimate some payment rates. Make your estimates based on historical trends and be prepared to “defend” your estimate in your paper.
c.Read the narrative in this document about Expenses and enter your estimates in the assumptions tab on the Excel spreadsheet. You will be asked to estimate some rates of increase in labor and benefit costs.
d.Read the narrative in this document about Capital costs and enter your estimates in the assumptions tab on the Excel worksheet. You will be asked to estimate the interest rate on a loan.
e.Evaluate the results on your income statement against your objectives. Make adjustments to your assumptions that are necessary to produce the income statement that meets your Board’s objectives. Discuss these results and your assumptions in your paper.
2.Draft your narrative that demonstrates to the Board, how your budget was constructed, the significant assumptions, and performance management is prepared to deliver.
3.Print the schedules you want to include as support for your narrative (you can reference these in your narrative if you wish).
4.Finalize your presentation and make sure your budget meets the objectives outlined by the Board.

Alamo Hospice is the premier Hospice program in the state. It is 2 times larger than the next largest hospice. There are five more hospice providers in its service area. Alamo is a 501(c)3 not for profit, governed by a volunteer Board of Directors. The Directors are comprised of representatives from the community, few of which have financial backgrounds.

2. Achieve improvements in productivity of at least 2%
3. Produce at least a 5% Net Margin from Operations
4. Grow the number of patients admitted by 6%

ADMISSIONS 2 Years Ago 1 Year Ago Current Year
Total 720 750 790
Home Care % 60.0% 57.0% 56.0%
Long Term Care % 40.0% 43.0% 44.0%

Home Care 66.0 67.0 68.0
Long Term Care 68.0 70.0 72.0

Home Care 28,512 28,676 30,056
Long Term Care 19,584 22,540 25,056
Total 48,096 51,216 55,11

Home Care 78.1 78.6 82.3
Long Term Care 53.7 61.8 68.6
Total 131.8 140.3 151.0

a) Hospice Gross Revenue: Hospice revenue is derived primarily from Medicare. All pay types pay Alamo on a “Per-Diem” basis or per patient day. Alamo tracks its revenue by Pay Source. Management does not expect the mix of Payers to change Next Year. The mix of Admissions by Pay Source is as follows:
ADMITS BY PAY SOURCE 2 Years Ago 1 Year Ago Current Year
Medicare 80.0% 80.0% 80.0%
Medicaid 3.0% 3.0% 3.0%
Managed Care 7.0% 7.0% 7.0%
Commercial 7.0% 7.0% 7.0%
Charity 1.0% 1.0% 1.0%
Self Pay 2.0% 2.0% 2.0%
Total 100.0% 100.0% 100.0%

 

Routine $ 175.00 $ 178.00 $ 180.00
Inpatient $ 760.00 $ 762.00 $ 764.00
Respite $ 182.00 $ 185.00 $ 187.00
Continuous $ 980.00 $ 985.00 $ 990.00

 

Routine $ 137.25 $ 140.05 $ 142.91 $ 145.77
Inpatient $ 610.57 $ 623.03 $ 635.74 $ 648.45
Respite $ 141.97 $ 144.87 $ 147.83 $ 150.79
Continuous $ 801.07 $ 817.42 $ 834.10 $ 850.78

 

Routine 68.71% 68.71% 68.71% 68.71%
Inpatient 64.01% 64.01% 64.01% 64.01%
Respite 54.13% 54.13% 54.13% 54.13%
Continuous 68.71% 68.71% 68.71% 68.71%

 

MANAGED CARE 2 Years Ago 1 Year Ago Current Year
Routine $ 135.00 $ 138.00 $ 141.00
Inpatient $ 650.00 $ 663.00 $ 676.00
Respite $ 132.00 $ 135.00 $ 138.00
Continuous $ 800.00 $ 816.00 $ 832.00
COMMERCIAL
Routine $ 137.00 $ 140.00 $ 143.00
Inpatient $ 655.00 $ 668.00 $ 681.00
Respite $ 140.00 $ 143.00 $ 146.00
Continuous $ 820.00 $ 836.00 $ 853.00

 

c) Nursing Home Pass Thru – When a Hospice patient who resides in a nursing home is entitled to both Medicaid and Medicare (called “Dually Eligible”), the nursing home no longer bills the state Medicaid program for that patient’s long-term care. Instead, the nursing home bills and receives payment from the hospice. The hospice then bills the Medicaid agency for the patient’s room and board. The state Medicaid agency must pay the hospice at least 95% of what Medicaid would have paid the Nursing Home. Alamo had 35% of its Long Term Care patient days dually eligible in one of three nursing homes. The percent of Long Term Care patient days that are dually eligible is as follows:

 

Percent of LTC Patient Days 35.0% 36.0% 38.0%

 

Nursing Home 1 25.0% 28.0% 35.0%
Nursing Home 2 40.0% 41.0% 43.0%
Nursing Home 3 35.0% 31.0% 22.0%
Total 100.0% 100.0% 100.0%

 

Nursing Home 1 $ 170.83 $ 173.25 $ 176.10
Nursing Home 2 $ 130.30 $ 129.40 $ 135.20
Nursing Home 3 $ 155.75 $ 158.60 $ 163.25

 

a) Labor Hours – Clinical services at hospice are delivered primarily by four disciplines; Registered Nurses (RN), Medical Social Workers (MSW), Home Care Aides (HCA) and Pastoral Counselors. Productivity is expressed as the number of patients per Full Time Equivalent (FTE). Productivity for the Long Term Care team is higher than that of the Home Care Team because the patients are concentrated in facilities, thus reducing travel time between patients.

 

Home Care
RN 9.8 9.7 9.9
MSW 21.5 21.6 21.7
HCA 5.0 5.0 5.0
Pastoral 50.5 50.6 51.0
Long Term Care
RN 11.5 11.6 12.0
MSW 25.0 25.1 25.2
HCA 6.0 6.0 6.0
Pastoral 55.0 55.0 55.0
Administrative
Management 42.0 42.0 42.5
Clinical Management 30.0 31.0 32.0
Clerical 4.2 4.2 4.3

 

Home Care
RN $ 32.50 3.00% 2.50%
MSW $ 28.00 2.00% 1.75%
HCA $ 14.00 2.00% 1.75%
Pastoral $ 23.00 2.00% 1.75%

 

RN $ 32.50 3.00% 2.50%
MSW $ 28.00 2.00% 1.75%
HCA $ 14.00 2.00% 1.75%
Pastoral $ 23.00 2.00% 1.75%

 

Management $ 52.00 2.00% 2.00%
Clinical Management $ 40.00 2.00% 1.75%
Clerical $ 17.00 2.00% 1.75%

 

FICA 7.65% 7.65% 7.65%
Health Insurance 8.50% 9.50% 9.75%
Worker’s Comp 0.20% 0.20% 0.20%
Pension 4.00% 4.50% 4.50%

 

Home Care
Contract Labor
Physical Therapy $ 1.10 $ 1.12 $ 1.14
Dietitian $ 0.20 $ 0.20 $ 0.21
Contract Services
Durable Medical Equipment $ 6.50 $ 6.50 $ 6.50
Pharmaceuticals $ 12.00 $ 12.24 $ 12.48
Inpatient Services $ 630.00 $ 643.00 $ 659.00
Respite Services $ 137.00 $ 140.00 $ 143.00
Supplies & Other
Medical Supplies $ 2.35 $ 2.40 $ 2.44
Office Supplies $ 1.20 $ 1.21 $ 1.22
Mileage $ 2.50 $ 2.50 $ 2.50

 

Contract Labor
Physical Therapy $ 0.20 $ 0.20 $ 0.20
Dietitian $ – $ – $ –
Contract Services
Durable Medical Equipment $ 4.50 $ 4.50 $ 4.50
Pharmaceuticals $ 12.00 $ 12.00 $ 12.00
Inpatient Services $ 630.00 $ 643.00 $ 659.00
Respite Services $ 137.00 $ 140.00 $ 143.00
Supplies & Other
Medical Supplies $ 6.50 $ 6.53 $ 6.80
Office Supplies $ 1.20 $ 1.20 $ 1.20
Mileage $ 1.39 $ 1.45 $ 1.51

 

Supplies & Other
Office Supplies $ 0.45 $ 0.46 $ 0.49

 

Occupancy
Rent $ 360,000 2.50% 2.50% 2.50%
Utilities $ 21,600 2.50% 2.50% 2.50%
Telephone $ 144,000 2.00% 2.00% 2.00%

 

Consulting $ 20,000 3.00% 3.00% 3.00%
Medical Director $ 36,000 3.50% 3.50% 3.50%

 

Meetings & Travel $ 40,000 2.00% 1.00% 2.00%
Dues and Fees $ 1,500 2.00% 2.00% 2.00%
License & Accreditation $ 4,000 2.00% 2.00% 2.00%
Postage & Mail $ 3,000 2.00% 2.00% 2.00%
Education & Training $ 12,000 3.00% 2.00% 2.00%

 

Beginning Balance $ 168,000 $ 168,000 $ 170,000 $ 172,700
Add: New Equipment – 2,000 2,700 148,350
Total $ 168,000 $ 170,000 $ 172,700 $ 321,050

 

Equipment – Existing
Fixed Equipment $ 12,000 $ 11,500 $ 11,000 $ 10,500
Moveable Equipment 21,600 22,140 22,694 23,261
Total Equipment $ 33,600 $ 33,640 $ 33,694 $ 33,761

 

Cash $1,821,612 $1,799,712 $2,114,520
Accounts Receivable $1,348,406 $1,481,367 $1,652,092
Equipment $ 168,000 $ 170,000 $ 172,700
Accumulated Depreciation $ 83,600 $ 117,600 $ 151,740
Accounts Payable $ 584,800 $ 678,912 $ 782,568
Net Assets $2,376,905 $2,642,902 $2,993,339

 

Days Cash on Hand 78.0 69.0 73.0 81.0
A/R Days (Net) 55.0 55.0 55.0
Days in A/P 25.0 26.0 27.0

 

a.Identify the changes from year to year. What is driving the change (governmental policy, inflation, local market, etc).
2.Develop a narrative that describes the performance of the organization.
a.Include a 5 – 7 page double-spaced narrative that “explains” the budget and the results it produces to the Board of Directors. Write the document from the perspective of Management to the Board.
3.Create the appropriate schedules that detail the components of the budget. Be sure to include any significant variances you feel are appropriate and their cause. The suggested presentation components include:

 

b)Income Statement
c)Schedule of Volume
d)Schedule of Revenue
e)Schedule of Labor
f)Schedule of Expense
g)Schedule of Capital

 

5.Ensure that your budget supports the organizations objectives and state that it does so in your narrative.

 

2.Accuracy – are the computations correct based on the assumptions you used?
3.Completeness of Schedules – Are the appropriate schedules included that detail the key information needed by the Board?
4.Achievement of organizational goals – Does the budget presented achieve the goals established by the organization?

 

Check the column widths. You sometime may see ### in the columns instead of numbers. Increase the column width to remove the hash marks.
Cells in Blue indicate user input. Cells in black indicate a formula should be present.
This spreadsheet was meant to be used interactively, that is, it was designed so that one could make changes in the assumptions and see the impact on each of the statements and schedules. When creating your formulas, reference the cells on the “Assumptions” tab.

The time to relieve your academic stress is now. Never again should you struggle with your pressing nursing assignments when Nursing Academic Writers got you covered. Our Nursing Academic Writers writing service got your back!

If you need help with your nursing paper, We are your ultimate nursing assignment writing helper. Our professional Nursing Academic Writers are always ready to tackle even the hardest of nursing papers. Get in touch. Order today and Always.

Best site that aces Nursing Academic Papers and the best place to get nursing papers done.

Our Nursing Academic Writers are well experienced in writing nursing papers and are thereby able to tackle any topic around Nursing, Biochemistry, Biology, Chemistry, Pedagogy, Gynecological, Medicine & Health, Healthcare, Nutrition, or Pharmacology.

We guarantee customer satisfaction to all our clients.

Let our Nursing Academic Writers be there for you. Our Nursing Academic Writers writing service comprises 100% Plagiarism-Free Papers, On-Time Delivery, 24/7 Support, and Full Confidentiality.

Get nursing paper writing help on Budget Development And Analysis Essay Assignment Paper from Nursing Academic Writers

Factors that make us special:

• We handle assignments for all nursing courses. So, don’t worry about the topic of the essay you want, we are ready to help you with your assignment regardless of the course or topic.
• Our writers read, understand, and follow one by one, the instructions provided to deliver the most accurate essays. We offer the correct form and style of essays.
• You can be sure the paper will have proper references based on the type of citation style you choose.
• You can always work with the same writer you liked. You can include the writer’s ID in the order form and we will ensure your expectations are met. We have writers who are experienced in all areas of study.
• Affordable services. Relax! we are not expensive, by the way, our prices are fair for the writers, but affordable to you as a customer. We will offer you a discount to try our services. Become part of our loyalty discount program by coming back for more and more services.
• We have a very flexible pricing system. The good news is that we let you choose from five quality levels, from High School to Ph.D. We also let you choose from different deadlines, from 5/6 hours to 20 days.