The Westside Hospital radiology department is preparing a budget for the following year
Case 3 – Westside Hospital The Westside Hospital radiology department is preparing a budget for the following year. A major budget category is hand, foot, and forearm imaging. Current year admissions for these imaging categories totaled 2,000, which breaks down as follows: Procedure Time Required Volume Proportion Rate Hand imaging 10 minutes 60% $100 Foot imaging 20 minutes 30% $300 Forearm imaging 30 minutes 10% $400 The radiology department head thinks there will be a 10% increase in volume for next year. This additional volume is expected to have the same procedure mix as the current year. Rates are not expected to change. The controller projects the payer analysis to be 50% Medicare (reimbursement % of charges), 20% Medicaid (reimbursement %…
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