- Using the Budget Worksheet Template, add an additional employee for October – December. The monthly salary for the employee is $2,000. What impact does that have to your budget? Don’t forget to include employer Retirement contributions and other employee benefits.
- Because of demand, the practice is going to add an additional physician for October – December. The physician’s salary is $8,000 per month. What is the impact to the budget of adding an additional physician? Don’t forget to include employer retirement contribution.
- You have negotiated lower rates from your drug provider. Effective July your monthly cost for drugs will be $11,000. Calculate the annual cost of drugs for the entire year using the input amount for January – June and the new cost for July – December. What is your actual drug cost? What percentage of your budget for drugs was utilized for the year?
- Your landlord has renegotiated your lease. Starting in October, your monthly building rent will be 19,000. What is your total cost for rent for the year? What percentage of your budget for rent was utilized for the year?
- In reviewing the percentages of each category used for the first six months of the year, are there any areas of the budget that you would adjust either up or down and why?
|Year to Date Percent of Budget Worksheet: FY XXXX||Annual Budget||JAN||FEB||MAR||APR||MAY||JUNE|
|Physician work RVUs||31,000||2,155||2,459||2,583||2,789||3,012||2,256|
|Fee-for-service collections||$ 3,002,177||222,356||245,788||257,808||259,760||260,441||245,100|
|Total Practice Income||$ 3,044,326||225,456||249,244||261,519||263,559||263,952||248,790|
|Total employee salaries||$ 946,156||$ 78,846||$ 78,846||$ 78,846||$ 78,846||$ 78,846||$ 78,846|
|Employee retirement contributions||78,854||6,571||6,571||6,571||6,571||6,571||6,571|
|Other employee benefits||69,537||5,795||5,795||5,795||5,795||5,795||5,795|
|Temporary support staff||21,400||1,783||2,559||1,700||2,650||2,160||1,785|
|Information technology depreciation||44,925||3,744||3,744||3,744||3,744||3,744||3,744|
|Information technology supplies and maintenance||9,788||816||852||765||740||891||650|
|Medical and surgical supplies||72,238||6,256||6,152||6,250||6,936||5,897||6,020|
|Building maintenance and utilities||11,450||954||988||942||978||954||956|
|Furniture and equipment maintenance||9,340||778||812||810||792||785||776|
|Administrative supplies and services||51,737||4,312||4,533||4,623||4,459||4,500||4,200|
|Laboratory equipment depreciation||53,666||4,472||4,472||4,472||4,472||4,472||4,472|
|Laboratory maintenance and supplies||35,000||2,900||3,120||3,266||2,998||2,917||2,987|
|Radiology equipment depreciation||24,020||2,002||2,002||2,002||2,002||2,002||2,002|
|Radiology maintenance and supplies||6,733||561||575||589||612||541||589|
|General liability insurance-G&A||6,739||591||591||598||563||548||589|
|Prof liability insurance||49,024||–||49,024||–||–||–||–|
|Promotion and marketing||8,330||694||725||723||698||712||700|
|Total Operating Expenses||$ 1,899,406||157,538||204,493||179,219||151,089||157,659||152,441|
|Amount Available for Distribution to Physician Owners||$ 1,144,920||67,918||44,751||82,300||112,470||106,293||96,349|
|Physician salaries||$ 900,000||$ 60,000||$ 60,000||$ 60,000||$ 60,000||$ 60,000||$ 60,000|
|Physician retirement contribution||107,700||6,600||6,600||6,600||6,600||6,600||6,600|
|Physician meetings & travel||23,750||1,980||2,562||1,988||1,955||1,897||2,695|
|Physician other fringe benefits||56,215||4,848||4,985||4,596||4,680||4,652||4,789|
|Total Physician Compensation and Benefits||$ 1,144,920||$ 73,428||$ 74,147||$ 82,300||$ 73,235||$ 73,149||$ 96,349|
|Net Income after Physician Distributions||$ –||$ (5,510)||$ (29,396)||$ –||$ 39,235||$ 33,144||$ –|
|Copyright © 2009. All Rights Reserved. Medical Group Management Association. This sample budget uses family medicine data from the MGMA Cost Survey for Single Specialty Practices: 2008 Report Based on 2007 Data. The budget is based on a 5 FTE Physician Medical Practice.|
|How to Use this Tool: The budgeting process involves monitoring an organization on a period to period basis. This sample year to date percent of budget worksheet is meant to be a template for medical practice administrators to use monthly. It allows administrators to compare their organization’s actual financial performance to the predicted annual budget and allows them to monitor and control finances. By reviewing performance on a monthly basis an administrator is in a better position to make adequate adjustments to compensate for any deviation from the budget.|
|Column O has the calculation for “Year to Date Total” and Column P has the calculation for “Year to Date Percent of Budget.” Column P will show how much of the budgeted amount for the particular entry is spent year to date. For example, if it is the end of June, the percent of budget of any particular entry would ideally be around 50% of budget, as June is the midyear mark.|
|In physician-owned medical groups, the compensation of the shareholder / owners is the amount that remains from total practice revenue after all expenses are paid. On a practical basis, most practices pay the doctors a predicted amount monthly with a periodic distribution of any excess revenue. In the sample budget, the distribution occurs quarterly, in March and June. In these months, the net income of the practice was zero because the excess revenue was distributed to the physicians as compensation.|
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