THE COLLEGE OF ST. SCHOLASTICA Duluth, Minnesota Department of Health Information Administration TO: Department Directors FROM: Robert Carlson Chief Financial Officer DATE: July 29, 2019 RE: Budget...

THE COLLEGE OF ST. SCHOLASTICA
Duluth, Minnesota
Department of Health Information Administration
TO:Department Directors
FROM:Robert Carlson
Chief Financial Officer
DATE:July 29, 2019
RE:Budget Preparation
As we begin thinking of the XXXXXXXXXXbudget, the overall attitude must once again be of extraordinary cost awareness.
The local economy of Duluth and the surrounding area is improving slightly. Tourism year-round is expanding in Duluth. We also expect continued emphasis on out-of-hospital activity to result in fewer inpatient admissions.
The pressures to contain the rise in health care expenditures will continue. Our contracts with third-party payers fix payments at levels that continue to place cost-containment challenges before us. Department managers will have to conservatively develop their budgets, both operating and capital, recognizing that the hospital's financial situation is tight and the level of care to be provided must remain high.
As the budget is prepared and implemented, be aware that a goal of each and every employee should continue to be that of making this hospital a financially strong organization.
THE COLLEGE OF ST. SCHOLASTICA
Duluth, Minnesota
Department of Health Informatics and Information Management
TO:All Department Heads
FROM:Margaret Johnson, CMA
DATE:July 29, 2019
RE:Budgeting Process
The forms for presentation of your fiscal year XXXXXXXXXXdepartmental budget requests are attached. You are being asked to budget for all general operating expenses, capital expenditures, and personnel expenses anticipated for the period of October 1 through September 30.
Revenue Budget. The purpose of the Revenue Budget is forecasting revenue from non-patient activity. The budget should reflect any price or fee changes and volume change expected.
Operating Budget. The purpose of the Operating Budget is forecasting all expenditures for office operations exclusive of personnel and major equipment needs. Much of this budget will be based upon last year's historical costs, but should be adjusted to reflect anticipated changes.
Capital Budget. The purpose of the Capital Budget is forecasting all expenditures for major equipment. For our budget purpose a "capital item" is defined as any one item for equipment which exceeds $500 in cost and has a life expectancy of three years minimum.
Personnel Budget. The purpose of the Personnel Budget is forecasting all expenditures for personnel compensation, i.e., wages, salaries, and fringe benefits. In calculating personnel compensation, a cost of living increase will be given to all employees effective October 1. This will amount to 4% of their base wage/salary. DO NOT budget for any other types of wage/salary increases at this time.
Fringe benefits will be calculated at 22% of gross wages for hourly (clerical/technical) employees and 30% of gross salary for monthly (professional) employees.
If you desire assistance in completing your budget calculations or desire additional information in completing your budget estimations, please feel free to contact Pam Peterson in Personnel, Larry Smith in Purchasing, or Margaret Johnson.
Note:∙All figures entered into the budget forms should be rounded to the nearest whole dollar amount.
BUDGETING SCHEDULE
The schedule for budget completion and review is as follows:
July Budget forms and instructions released to budgeting departments.
August Complete budgets returned for review.
SeptemberBudgets are revised and approved by Administration.
September All budgets submitted for Finance Committee of Board of Trustees.
September Budget presented for approval at Board of Trustees meeting.
October Begin operating under approved budgets.
BUDGET REPORTING
Once the budget is completed and we begin operating in the budgeting period (October 1), we must have a follow-up procedure in order to determine if our budget projections are accurate. Only with a routine follow-up can we determine from time to time if our financial operation is proceeding as planned. Our budget follow-up procedure is outlined below:
1.After the end of each quarter, you will receive a financial report for your department containing the budgeted figures for each expense category and the actual expenditures for each expense category, as well as a column indicating the variance between the two.
2.Any expense category which has a negative variance of four percent or more will require that a written explanation of this variance be submitted to the Fiscal Manager with a copy to your immediate superior. Your budget will be marked to indicate which items require this explanation.
INFORMATION ONLY
CURE-ALL MEDICAL CENTER
HEALTH INFORMATION SERVICES
Planning Considerations for the XXXXXXXXXXBudgeting Process
Objectives:
1.To establish quarterly in-service educational program for the health information services department employees by January 1, at a cost not to exceed $ 200 per program/session.
2.To establish a Trauma Registry Program by January 1, at a cost not to exceed $50,000 this first budget year.
NOTE: Fiscal year is October 1 – September 30
Regarding Objective 1:
It is NOT anticipated that any additional personnel or equipment will be necessary to accomplish this objective.
In-Service will be done utilizing rented video presentation, presentations by hospital personnel or presentations by invited outside speakers. Presentations by outside speakers will be funded at the level of $50/hour for honorarium and $.35/mileage per hospital policy.
Regarding Objective 2:
This will necessitate the hiring of a full-time position to function as registrar. S/He will need to be employed 3 months before the program goes into effect to allow for preliminary program development.
It will be necessary to purchase a desk, two chairs, telephone set, PC and software to equip this new employees work area.
· Projected salary - $30,000
· Benefits – 22% if hourly; 30% if salaried
· Desk cost - $350
· Chair cost - $110
· Telephone set - $60
· PC - $1500
· Software - $3000
Other considerations:
One of the PC workstations in the transcription area of your department is six years old and after constant use now requires replacement. You plan to replace it during this budget period.
You are to project the following expenses for next budget year based on an analysis of your last year’s usage and on your expected changes during the year
∙A subscription to Medical Records Briefing - $185/year (Due 1/1)
∙A subscription to Topics in Health Information Management - $95/year (Due 4/1)
∙Obtain Health Information Management: A Strategic Resource - $85
∙CPT (for new year) – 2 copies available March 1, $80 each
Quantity Used
Medical Record Forms Per YearPrice/Unit
Discharge Summary1/discharge$20.00/500
History/Physical1/discharge$20.00/500
Operative Reports.5/discharge$20.00/500
Consultation Reports.3/discharge$20.00/500
General Office Supplies
Pens, pencils, tape, clips, etc.$1000.00/yr
Letterhead and envelopes5000 each $15.00/500-letterhead
$10.00/500-envelopes
Computer paper40 boxes$20.00/box
Flash drives10 boxes$25.00/box
Service/License Fees On
Mobile file shelving service contract$500/yr
(payable January 1)
Encoder Software License$1500.00/yr
(payable July 1)
Reproduction/printing30 pgs x 60% of Medicare$.06/copy
discharges & 20 pgs x 20%
of non-Medicare discharges
Telephone Service$10.00/month/employee$800.00 for long
XXXXXXXXXXdistance/ fax charges)
Professional Development
State Association Annual Mtg.Registration$350.00
(1 person)Travel XXXXXXXXXX300 miles @ .32/miles=$96.00
Lodging $90.00/night x 2=$180.00
National Seminar/ WorkshopRegistration$250.00
Topic: TBD Travel $ XXXXXXXXXXAirfare- San Francisco)
(1 person) Lodging $120.00/night x 2=$240.00
Coding SeminarRegistration$110.00/each
(2 coders)Travel XXXXXXXXXX300 miles @ .32/miles=$96.00
Lodging$60.00/each
Revenue
The only revenue the department generates is in the Release of Information area. Historical data indicates revenue can be projected at an average of $10.00 per record. The volume is estimated at 50% Medicare discharges and 20% non-Medicare discharges.
THE COLLEGE OF ST. SCHOLASTICA
Duluth, Minnesota
Department of Health Informatics and Information Management
CURE-ALL MEDICAL CENTER
SUMMARY BUDGET REQUEST
DEPARTMENT:Health Information ServiceFISCAL YEAR: XXXXXXXXXX
COST CENTER:12100
INSTRUCTIONS: Present the total figures from your Operating Budget, Capital Expenditure Budget and Personnel Budget requests on this summary sheet and attach this page as the top sheet on your budget package when you submit it to your administrative head.
REVENUE TOTAL
EXPENSES BY CLASS
01Supplies
02Services
03Other Expenses
04Capital Equipment
05Hourly Employees
06Professional Employees
07Fringe Benefits
EXPENSE TOTAL
PREPARED BY:
DATE:
page \* arabic5
CURE-ALL MEDICAL CENTER
REVENUE BUDGET
DEPARTMENT: Health Information ServiceFISCAL YEAR: XXXXXXXXXX
COST CENTER: 12100
INSTRUCTIONS: Provide an estimate of revenues expected by source. Attach an explanation of your method of calculation. Inpatient or outpatient service generated revenues do not get estimated on this document.

Source of Revenue
Per Unit
Price
Volume
Estimate
Total
Revenue
1.



2.



3.



4.





Grand Total Revenue

Prepared by:
Date:
CURE-ALL MEDICAL CENTER
OPERATING BUDGET REQUEST
DEPARTMENT: Health Information Service
FISCAL YEAR: XXXXXXXXXX
COST CENTER: 12100
01Supplies (Specify)Cost
_______________________________ _________
________________________________________
________________________________________

________________________________________Total:_________ (01)

02Services (Specify)
_______________________________ XXXXXXXXXX_________
_______________________________ XXXXXXXXXX_________
_______________________________ XXXXXXXXXX_________
_______________________________ XXXXXXXXXX_________ XXXXXXXXXXTotal:__________(02)


03Other Expenses (Specify)
_______________________________ XXXXXXXXXX__________
_______________________________ XXXXXXXXXX__________
_______________________________ XXXXXXXXXX__________
_______________________________ XXXXXXXXXX__________
_______________________________ XXXXXXXXXX__________ XXXXXXXXXXTotal:__________(03)










CURE-ALL MEDICAL CENTER
CAPITAL EXPENDITURE BUDGET REQUEST
DEPARTMENT:Health Information Service
FISCAL YEAR XXXXXXXXXX
COST CENTER: 12100

04. ITEM REQUESTED
Estimated Cost
Per UnitLine Total
New OR
Replacement
Month
Required
Priority*
Code
Approval (Do not
write here)

















































Total: ________ (04)
NOTE:1)A "Capital Item" is any item which has a cost of $500 or more and a useful life of three years or more.

2)A SUPPORTIVE STATEMENT form must be completed and attached for each item requested.
*PRIORITY CODE:
M =mandatory--continuing operations require this item.
E =essential--new program, major objective depends on this item.
D =desirable--enhances operation, no major detriment if unfunded this year.
CAPITAL EQUIPMENT REQUEST
SUPPORT STATEMENT
CURE-ALL MEDICAL CENTER

DEPARTMENT: DATE OF REQUEST:
ITEM DESCRIPTION:

ITEM COST (ESTIMATE):
SPECIFY (CHECK BOX) IF REQUESTED ITEM IS:
I.A.REPLACEMENT OF EXISTING EQUIPMENT[ ]YES[ ]NO
B.NEW ITEM SUPPORTING NEW PROGRAM[ ]YES[ ]NO
C.NEW ITEM ENHANCING CURRENT PROGRAM[ ]YES[ ]NO
II.WILL ITEM'S COST BE CHARGED TO PATIENT FEES?[ ]YES[ ]NO
If yes, will new cost increase current charges?[ ]YES[ ]NO
III.IF THE ITEM YOU ARE REQUESTING IS A REPLACEMENT, DOES IT HAVE A TRADE-IN VALUE? [ ] YES [ ] NO
IV.ESTIMATE THE LIFE EXPECTANCY OF THIS ITEM[ ] 1-3 Yrs.
[ ] 3-6 Yrs.
[ ] 6-10 Yrs.
[ ] 10-20 Yrs.
V.CHECK ONE:[ ]EXTRAORDINARY CAPITAL ITEM $100,000.00 UP
[ ]ORDINARY CAPITAL ITEM $500.00 to $99,999.99
DEPARTMENT MANAGER SIGNATURE:
ADMINISTRATIVE APPROVAL: DATE:
CAPITAL EQUIPMENT REQUEST
SUPPORT STATEMENT
CURE-ALL MEDICAL CENTER

DEPARTMENT: DATE OF REQUEST:
ITEM DESCRIPTION:

ITEM COST (ESTIMATE):
SPECIFY (CHECK BOX) IF REQUESTED ITEM IS:
I.A.REPLACEMENT OF EXISTING EQUIPMENT[ ]YES[ ]NO
B.NEW ITEM SUPPORTING NEW PROGRAM[ ]YES[ ]NO
C.NEW ITEM ENHANCING CURRENT PROGRAM[ ]YES[ ]NO
II.WILL ITEM'S COST BE CHARGED TO PATIENT FEES?[ ]YES[ ]NO
If yes, will new cost increase current charges?[ ]YES[ ]NO
III.IF THE ITEM YOU ARE REQUESTING IS A REPLACEMENT, DOES IT HAVE A TRADE-IN VALUE? [ ] YES [ ] NO
IV.ESTIMATE THE LIFE EXPECTANCY OF THIS ITEM[ ] 1-3 Yrs.
[ ] 3-6 Yrs.
[ ] 6-10 Yrs.
[ ] 10-20 Yrs.
V.CHECK ONE:[ ] EXTRAORDINARY CAPITAL ITEM $100,000.00 UP
[ ]ORDINARY CAPITAL ITEM $500.00 to $99,999.99
DEPARTMENT MANAGER SIGNATURE:
ADMINISTRATIVE APPROVAL: DATE:
CAPITAL EQUIPMENT REQUEST
SUPPORT STATEMENT
CURE-ALL MEDICAL CENTER

DEPARTMENT: DATE OF REQUEST:
ITEM DESCRIPTION:

ITEM COST (ESTIMATE):
SPECIFY (CHECK BOX) IF REQUESTED ITEM IS:
I.A.REPLACEMENT OF EXISTING EQUIPMENT[ ]YES[ ]NO
B.NEW ITEM SUPPORTING NEW PROGRAM[ ]YES[ ]NO
C.NEW ITEM ENHANCING CURRENT PROGRAM[ ]YES[ ]NO
II.WILL ITEM'S COST BE CHARGED TO PATIENT FEES?[ ]YES[ ]NO
If yes, will new cost increase current charges?[ ]YES[ ]NO
III.IF THE ITEM YOU ARE REQUESTING IS A REPLACEMENT, DOES IT HAVE A TRADE-IN VALUE? [ ] YES [ ] NO
IV.ESTIMATE THE LIFE EXPECTANCY OF THIS ITEM[ ] 1-3 Yrs.
[ ] 3-6 Yrs.
[ ] 6-10 Yrs.
[ ] 10-20 Yrs.
V.CHECK ONE:[ ]EXTRAORDINARY CAPITAL ITEM $100,000.00 UP
[ ]ORDINARY CAPITAL ITEM $500.00 to $99,999.99
DEPARTMENT MANAGER SIGNATURE:
ADMINISTRATIVE APPROVAL: DATE:
CURE-ALL MEDICAL CENTER
PERSONNEL BUDGET REQUEST
DEPARTMENT: Health Information Service
FISCAL YEAR XXXXXXXXXX
COST CENTER: 12100
05.HOURLY EMPLOYEESDATEPRESENT BASEPROJECTED

HIREDPAY/YEARCOST
Brown9/9/99$19,800___________
Dorsey12/8/92$25,900___________
Glass6/24/90$22,700___________
Hanson10/10/89$28,000___________
Smith1/5/97$28,500___________
Torgerson7/15/00$20,600__________


TOTAL: (05)
NOTE:If any new hires anticipated, indicate expected date of hire,
yearly pay expected and attach a written justification for the
new position.
CURE-ALL MEDICAL CENTER

PERSONNEL BUDGET REQUEST
DEPARTMENT: Health Information Service
FISCAL YEAR XXXXXXXXXX
COST CENTER: 12100
Page 2
06.PROFESSIONAL EMPLOYEESDATEPRESENT BASEPROJECTED

HIREDPAY/YEARCOST
"You"5/1/98$60,000______



NOTE:If any new hires anticipated, indicated expected date of hire, salary expected and attach a written justification for the new position.
TOTAL: (06) ___________________
07.FRINGE BENEFITS
Hourly _________ XXXXXXXXXXProfessional _________
TOTAL: (07) ___________________


THE COLLEGE OF ST. SCHOLASTICA
Department of Health Information Management
STATISTICS FOR BUDGETING PURPOSES
Introduction
There are two classifications of hospital statistics in the budget process:
· base statistics
· department statistics
Base statistics are developed by Administration and project patient volume in the budget year. Department statistics are a department developed unit of service projecting department productivity. The base statistics are Patient Days, Nursery Days, Admissions, Births, Discharges, and Outpatient Visits.
See Appendix A for the base statistic and department specific statistic you must work with in your budgeting process.
See Appendix B for the base statistics--actual for last completed fiscal year and projected for next fiscal year. Use the projected base statistics in the budgeting process.
EXHIBIT A
DEPARTMENT BASE AND UNITS OF SERVICE BY DIVISION
Division/Department Name
Base Stat
Department Stat
Fiscal Services Division
HIM (Medical Records)
All Accounting Departments
All Business Service Departments
All Administrative Services Departments

Patient Days
Patient Days
Patient Days
Patient Days

Discharges
Discharges
Discharges
Discharges
Human Resources Division
Personnel
Safety
Hospital/Health Education
Medical Library

Patient Days
Patient Days
Patient Days
Patient Days

Discharges
Discharges
Discharges
Discharges
Professional Services
Lab Departments and Blood Bank
Lab Departments and Blood Bank
Diagnostic Radiation
Diagnostic Radiation
Radiation and Imaging
Radiation and Imaging
Oncology Radiation
Clinical Chaplaincy
Purchasing/Storeroom
Copy Center
Pharmacy
ECG and EEG

Pulmonary Function
Physical Therapy
Speech and Occupation Therapy

Discharges
Outpatients Visits
Outpatient Visits
Discharges
Outpatient Visits
Discharges
Patient Days
Discharges
Discharges
Outpatient Visits
Discharges
Discharges
Outpatient Visits
Discharges
Outpatient Visits
Discharges
Outpatient Visits
Discharges

Inpatient Tests
Outpatient Tests
Outpatient Exams
Inpatient Exams
Outpatient Exams
Outpatient Exams
Discharges
Contacts
Items Ordered
Items Received
Items Issued
Copies
Prescriptions
Doses
Inpatient Procedures
Outpatient Procedures
Inpatient Procedures
Outpatient Procedures
Inpatient Treatments
Outpatient Treatments
Inpatient Treatments
Division/Department Name
Nursing Service Division
Sniffles and Sneezes
OB, Peds, Psych, 4W, 5W, 6W, 7W, 8W, ICU, CCU, PCCU
Ambulatory OR
Labor and Delivery
Nursery
Surgery and OR Supplies
Emergency
Endoscopy


General Services
Plant Oprn. Utilities
Housekeeping
Laundry
Maintenance (all depts.)
Data Processing
Patient Food Service
Cafeteria
Base Stat
Patient Days
Patient Days
Outpatient Visits
Births
Births
Discharges
Outpatient Visits
Discharges
Outpatient Visits
Discharges
Patient Days
Patient Days
Patient Days
Patient Days
Patient Days
Patient Days
Department Stat
Discharges
Floor Pat Days
Cases
Newborn Days
Newborn Days
Hours
Cases
Visits
Inpatient Procedures
Outpatient Procedures
Pounds of Steam
Discharges
Pounds of Laundry
Discharges
Discharges
Patient Meals
Non-patient Meals
EXHIBIT B-1
BASE STATISTICS--DISCHARGES

Last Completed Fiscal Year 18-19
Projected for Next Year 19-20


Medicare

Other

Total

Medicare

Other
Budget Projection
Month






October
185
518
703
196
481
677
November
189
538
727
191
468
659
December
206
576
782
177
483
660
January
203
528
731
178
466
644
February
200
470
670
175
512
687
March
215
445
660
167
461
628
April
182
446
628
182
507
689
May
152
429
581
162
480
642
June
145
435
580
153
458
611
July
185
562
747
197
508
705
August
168
515
683
194
492
686
September
215
531
746
198
514
712
Total
2,245
5,993
8,238
2,170
5,830
8,000
EXHIBIT B-2
BASE STATISTICS--PATIENT DAYS

Last Completed Fiscal Year 18-19
Projected for Next Year 19-20


Medicare

Other

Total

Medicare

Other
Budget
Projection
Month






October
1,334
2,710
4,044
1,222
2,430
3,652
November
1,441
2,506
3,947
1,278
2,098
3,376
December
1,401
2,526
3,927
1,100
2,336
3,436
January
1,670
2,277
3,947
1,431
2,241
3,672
February
1,337
2,225
3,562
1,344
2,204
3,548
March
1,428
2,278
3,706
1,191
2,137
3,328
April
1,343
2,323
3,666
1,183
2,353
3,536
May
1,060
2,185
3,245
1,092
2,424
3,516
June
1,291
1,793
3,084
1,230
2,150
3,380
July
1,568
XXXXXXXXXX,612
4,180
1,523
2,381
3,904
August
1,117
2,483
3,600
1,360
2,177
3,537
September
1,519
2,250
3,769
1,379
2,236
3,615
Total
16,509
28,168
44,677
15,333
27,167
42,500
EXHIBIT B-3
BASE STATISTICS--BIRTHS

Last Completed Fiscal Year
18-19
Projected for
Next Year 19-20
Month


October
69
73
November
61
71
December
78
66
January
88
74
February
68
70
March
69
73

April
65
62
May
62
59
June
61
60
July
55
60
August
2
63
September
59
69
Total
797
800
May 16, 2021

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