Revenue Questions

Part 1 – Net Revenue per Patient 

• Using the Patient Cost Analysis Form in the Appendix from your “Revenue Management 

Manual” text (Form A-26), calculate your current costs per patient using the following 

information. 

 Total Number of Patients $16,245 

 Total Expenses $568,758 

 Fixed Expenses $389,600 

 Total Annual Revenue $1,090,800 

o What is the Net Revenue per patient? 

Part 2 – Reviewing the Budget 

• Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family 

Practice.pdf) as well as the Sample Operating Budget. 

• Compare the month of January to the Month of June. 

• Were these months over-budget or under-budget and why? As an office manager what do 

you see that can be listed as issues in these months? 

Part 3 – Preparing a Budget for 2012 

• Use the 2011 Budget for Main Street Medical Group (see attached-Summerville Family 

Practice.pdf). Make the following adjustments and share your results: 

o Patient Revenue is expected to grow by 3% due to the signing of a new managed 

care contract. What is the new dollar amount for patient revenue due to this 

increase? 

o The cost of expenses is expected to increase to 1.5%. What is the new dollar amount 

for the cost of expenses? 

o A new roof is needed which will cost $50,000. Prepare a new 12 month budget, in 

MS Word or wordpad or MS Excel, which reflects the 3% growth in patient revenue, 

the 1.5% in cost of expenses and the cost of the new roof.