University of New England Community Health Center Proposed Budget University of New England DR. David Bearden School Finance-EDU 709 April 25, 2012

CHC Proposed Budget pg 1 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance %   Income 4000 · Patient Revenue 4200 · Medicaid 4201 · Medicaid- Medical 1,501,563.00 Total 4200 · Medicaid 1,681,750.56 180,187.56 12.00% 4205 · SAGA- Medical 1,100,019.00 1,210,020.90 110,001.90 10.00% 4250 · Self Pay 4212 · Self Pay- Medical 113,525.00 Total 4250 · Self Pay 133,959.50 20,434.50 18.00% 4260 · Medicare 4207 · Medicare- Medical 230,885.00 Total 4260 · Medicare 270,135.45 39,250.45 17.00% 4265 · Private Insurance 4210 · Private Insurance- Medical 118,009.00 Total 4265 · Private Insurance 125,000.00 6,991.00 5.92% Total 4000 · Patient Revenue 3,064,001.00 3,420,866.41 356,865.41 11.65%

Medicaid 12% increase SAGA 10% increase Self Pay increased by 18% Medicare 17% increase Insurance 5.92% increase The above have consistent increases each year which in turn increases patient revenue by 11.65%.

CHC Proposed Budget pg 2 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % 4400 · Grant Revenue 4412 · DSS-CHCACT-Elig Worker Grant 37,000.00 4415 · CHCACT- Ryan White Part D 35,339.00 4430 · DPH-OPR Grant 100,796.00 4440 · HHS- IDS 21,042.00 4441 · HHS 330 650,000.00 4442 · HHS Ryan White Grant 243,750.00 Total 4400 · Grant Revenue 1,087,927.00 - 0.00% 4500 · Contribution Income 18,500.00 22,000.00 3,500.00 18.92% 4510 · Other Revenue 4515 · Donations 2,500.00 Total 4510 · Other Revenue 3,250.00 750.00 30.00% Total Income 4,172,928.00 4,534,043.41 Gross Profit 361,115.41 8.65%

11.65% Increase in Patient Revenue is the result of hiring more providers e.g. MD, Nurse Practitioners, and needed support staff so the numbers of patients and visits increased.

CHC Proposed Budget pg 3 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % Expense 5000 · Salaries & Wages 2,578,845.00 2,785,152.60 206,307.60 8.00% 5100 · Employee Benefits & Payroll Exp 5135 · Profess Lic/ Fees 5135101 · License Renewal & Other Fees 11,400.00 Total 5135 · Profess Lic/ Fees 13,680.00 2,280.00 20.00% 5140 · Memberships 5140101 · Membership 4,120.00 Total 5140 · Memberships 5,356.00 1,236.00 30.00% 5165 · Employee Incentive 5165109 · Employee Appreciation 7,500.00 Total 5165 · Employee Incentive 10,500.00 3,000.00 40.00% 5100 · Employee Benefits & Payroll Exp - Other 531,558.00 584,882.05 53,324.05 10.03% Total 5100 · Employee Benefits & Payroll Exp 554,578.00 614,418.05 59,840.05 10.79% 5200 · Communications 5201109 · Telephone 14,455.00 Total 5200 · Communications 15,611.40 1,156.40

8% shows increase in salaries that includes MD and NP and the support staff needed to see patients 10.79% increase in benefits. Dental added to existing benefit package

CHC Proposed Budget pg 4 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % 5300 · Professional Consultants 5301102 · Physician 24,426.00 29311.2 5301106 · Behavorial Heath 130,000.00 156000 Total 5300 · Professional Consultants 154,426.00 185,311.20 30,885.20 20.00% 5400 · Consultants 5402109 · Grant Writing 6,991.00 1747.75 5403101 · Interpreting Service 2,372.00 593 5404109 · Computer Support MIS 10,051.00 12563.75 25% 5405109 · Finance 10,000.00 2500 5406109 · Other Consultants 10,500.00 2625 Total 5400 · Consultants 39,914.00 20,029.50 (19,884.50) (48.82%) 5700 · Insurance 5703109 · Business Package Insurance 8,101.00 8,506.05 5704109 · Director & Officers Liability 3,251.00 3,413.55 Total 5700 · Insurance 11,352.00 11,919.60 567.60 5.00% 5800 · Interest Expense 5801109 · Mortgage Interest Expense 34,002.00 Total 5800 · Interest Expense - 0.00%

20% Professional Consultants will increase significantly because the center is continuing to add Behavioral health services through contracts rather than hiring as center employees 25% increase in Consultants for MIS finance. The center is implementing an Electronic Medical Records System for all patients. Other consulting costs reduced as will be done internally.

CHC Proposed Budget pg 5 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % CHC Proposed Budget pg 5 of 8 5900 · Operation of Plant 5901109 · Computer Repairs & Maint 34,082.00 34,082.0 5902109 · Contract Cleaning 18,299.00 18,299.0 5905109 · Exterminator 840.00 840.0 5906109 · Snow Plow 9,287.00 9,287.0 5907109 · Landscape 3,045.00 3,045.0 5908109 · Security 1,421.00 1,421.0 5910101 · Bio Hazzard Waste- Medical 2,116.00 2,116.0 5911109 · Garbage Pick Up 3,460.00 3,460.0 5912109 · Bldg Repairs & Maintenance 12,966.00 12,966.0 Total 5900 · Operation of Plant 85,516.00 98,343.40 12,827.40 15.00% 5915 · Utilities 5916109 · Water 1,189.00 5917109 · Gas/Heat 6,541.00 5918109 · Electricity 16,056.00 Total 5915 · Utilities 23,786.00 24,737.44 951.44 4.00% 5920 · Outside Services 5920101 · Advertisement/Promotion-Medical 21,021.00 21,021.0 5922109 · Payroll Service 10,401.00 10,401.0 5923101 · Prof Fees Credentialing-Medical 3,621.00 3,621.0 5925101 · Outside Lab 1,620.00 1,620.0 Total 5920 · Outside Services 36,663.00 51,328.20 14,665.20 40.00%

15% increase in plant operations as they will expand new services e. g 15% increase in plant operations as they will expand new services e.g. open evenings and weekends 40% increase to continue a major marketing plan to get more patients into care. 40% increase in lab services because they will be adding dental services for our patients. Medical Supplies will increase by 10% as they will see more patients. Outside Services increases by 40% due to added professional staff expenses.

CHC Proposed Budget pg 6 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % 6000 · Professional Fees & Membership 6001109 · Accounting 17,510.00 17,639.60 6003109 · Legal Fees 10,265.00 10,341.00 6006109 · Dues & Subscriptions 41,708.00 42,016.60 Total 6000 · Professional Fees & Membership 69,483.00 69,997.17 517.00 0.74% 6100 · Supplies 6101101 · Medical & Surgical Supplies 65,748.00 72,322.80 10% 6101105 · Dental Supplies 38,100.00 39,243.00 6102109 · Office Supplies 31,853.00 32,808.60 6103109 · Postage & Delivery 6,800.00 7,004.00 6104101 · Pharmacy Expense 5,001.00 5,151.00 6105109 · Cleaning Supplies 750.00 772.50 6107101 · Books, Periodicals & Reference 2,444.00 2,517.30 Total 6100 · Supplies 150,696.00 159,819.24 9,123.248 6.05% 6250 · Training/Conference 6250101 · Professional Development- Medic 21,200.00 Total 6250 · Training/Conference - 0.00%

CHC Proposed Budget pg 7 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % 6300 · Travel 6303101 · Lodging- Medical 4,480.00 4,790.50 6305101 · Mileage - Medical 4,343.00 4,644.00 6305103 · Transportation 6,682.00 7,145.10 6306101 · Conference - Medical 6,939.00 7,419.90 Total 6300 · Travel 22,444.00 23,999.37 1,555.37 6.93% 6400 · Miscellaneous Expenses 6405109 · Rental-Storage 3,565.00 3,733.30 6406109 · Rental-Equipment 9,298.00 9,736.90 6409102 · Emergency Financial Assistance 1,282.00 1,342.50 6409109 · Miscellaneous 4,500.00 4,712.40 6410109 · Licenses and Permits 562.00 588.50 6420109 · Bank Service Charges 637.00 667.10 6430109 · Special Events 6,895.00 7,220.40 Total 6400 · Miscellaneous Expenses 26,739.00 28,001.08 1,262.08 4.72% 6500 · Rent 6507109 · Rent- Building 15,000.00 Total 6500 · Rent - 0.00%

Supplies increased by 6.05% as more patients will be seen. Travel Expense increase of 6.93% Miscellaneous Expenses increased 4.72% Total Expenses increased to 8.06%

CHC Proposed Budget pg 8 of 8   Projected Increase over 12 to 13 budget Oct 11-Sept 12 Oct 12- Sept 13 Variance % 7000 · Bad Debt 165,185.00 173,444.25 8,259.25 5.00% 8000 · Depreciation 8001 · Depreciation-Medical Equip 2,217.00 8002 · Depreciation- Dental Equipment 7,500.00 8005 · Depreciation Expense-Building 38,944.00 8007 · Depreciation Expense-F&F 14,595.00 Total 8000 · Depreciation 63,256.00 - 0.00% Total Expense 4,067,540.00 4,395,570.50 328,030.50 8.06% Net Ordinary Income 105,388.00 138,472.91 33,084.91 31.39%

Total Expenses increase of 8.06% Net Income increase to 31.39% due to increase in patient visit volume and control of expenses planned. The Health center continues to expand acquiring both patients and employees each year. Revenue and Expenses reflect this future growth.

Defense of Decisions After several discussions with Kathy G. we discussed several options and changes to my initial budget. I needed to decrease marketing along with the patients self pay. Also my Gross Profit percentage was not accurate. Together we made changes to get this proposed finalized budget for the next year

Personal Learning We made several comparisons between a regular school system and the Community Health Center. We discussed the similarities and differences in grants, salaries, benefits, increases, and decreases per year. Overall I was able to maximize my finance knowledge through our conversations and Microsoft Excel spreadsheet comparisons. It was a great learning experience.