Budget Budgeted Revenue Description And Details Yearly

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Budget Budget C REVENUES Description Detail Yearly Budgeted Amount Clinic Revenue Lab 325 clients per month, 3,900 total visits 163,800.00 Revenue Medications 195 of billable labs per month, 2340 labs per year 58,500.00 Revenue Procedures 162 meds per month, 1,950 per year 39,000.00 Revenue Less # of billable procedures done per year 26,000.00 Contractuals Percentage negotiated with payer 114,920.00 TOTAL CLINIC REVENUE 402,220.00 EXPENSES Description Detail Yearly Budgeted Amount PAYROLL Provider salary Total salary 60,000.00 Receptionist salary 13,395.00 LPN salary 28,182.00 Total Salary & Wages: 101,577.00 Provider FICA Salary x 0.,590.00 Receptionist FICA Salary x 0.,024.68 LPN FICA Salary x 0.,155.92 Total FICA 7,770.60 Unemployment Health Insurance 10,222.08 Life Insurance 2,216.00 Long Term Disability 666.K Employer Contribution Total Additional Benefits: 13,104.08 TOTAL PAYROLL: 122,451.68 OPERATING EXPENSES Supplies Food 100 Misc. Supplies 1,000.00 Medications 5,000.00 Medical Supplies 4,500.00 Office Supplies 500.00 Printing 500.00 Postage UPS, Fed Ex, Postage 500.00 Professional Fees Consulting Accountants fees 1,000.00 Audit Fee 1,500.00 Legal Fees 1,500.00 Licensing Fees Clinic 300.00 Bank Fees 250.00 Advertising 5,000.00 Insurance Worker's Compensation 1,575.00 Gen/Pro/Med Mal liability, professional liability, employment, practice liability, property insuranc, etc. 15,000.00 Umbrella Ins. 830.00 D&O Ins. 1,000.00 Professional Development Meetings Continuing education for provider and staff 1,000.00 Cont. Memberships etc. Exp. Rural Health Association 300.00 Travel & Entertainment Monies for getting to conference 1,000.00 Facility Telephone Regular Service 1,800.00 Internet Access 300.00 Utilities Water, Electric, Garbage 5,000.00 Small Equipment & Tools 300.00 Equipment Rental 1,200.00 Capital Equipment 10,000.00 Rent or mortgage 7,200.00 Maintenance cleaning service, building & grounds upkeep 1,600.00 TOTAL OPERATING EXPENSES 69,755.00 TOTAL EXPENSES 192,206.68 Yearly Budgeted Amount NET INCOME (Loss) [Revenue - Expenses] 210,013.32

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This comprehensive financial overview presents a detailed budget analysis for a healthcare clinic, highlighting both revenue streams and associated expenses to project annual net income. The budgeting process is crucial in ensuring financial sustainability and strategic planning within healthcare facilities, especially those serving underserved populations.

The revenue section of the budget provides a breakdown of income sources, primarily derived from clinical services such as laboratory tests, medications, and procedures. With a patient volume of 325 clients per month, the clinic anticipates generating significant revenue from these services. Laboratory services, being a major component, are projected to yield approximately $163,800 annually, assuming consistent patient visits and billing rates. Similarly, medication sales are estimated at $58,500 per year, which is based on billing for 195 labs and 162 medications monthly. Additional revenue from contractual payments negotiated with payers contributes approximately $114,920 annually, culminating in total yearly clinic revenue of about $402,220.

On the expense side, payroll constitutes the largest expenditure, totaling approximately $122,452 annually. This includes salaries for providers, a receptionist, and a licensed practical nurse (LPN), as well as employer FICA contributions and other benefits such as health insurance, life insurance, and long-term disability. Effective salary management and benefit planning are vital for maintaining high-quality staffing levels without compromising financial health.

Operational expenses are extensive, covering supplies, medications, medical and office supplies, professional fees, insurance, advertising, professional development, travel, utilities, equipment rental, and facility costs. Notable among these are insurance premiums totaling over $16,400, including worker’s compensation, liability, and property insurance, which are essential for safeguarding the clinic financially.

Facility costs, including rent ($7,200 annually) and utilities ($5,000 annually), impact ongoing operational stability. The budget also allocates funds for capital equipment ($10,000) to support clinic infrastructure. Administrative expenses such as postage, printing, bank fees, and advertising contribute further to the operational costs, emphasizing the importance of efficient resource management.

In conclusion, the clinic’s projected net income of approximately $210,013 demonstrates a financially viable model assuming revenues and expenses stay consistent. Nonetheless, the importance of ongoing financial monitoring and adjustments cannot be overstated, particularly in the context of fluctuating healthcare reimbursement policies, patient volumes, and operational costs. Implementing rigorous financial controls and strategic planning ensures long-term sustainability, especially in underserved health environments where funding optimization is imperative.

References

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