Prepare a professional document to present to the VP of Radiology which will include separate tables for each of the following:1. Prepare a statistics budget summary by procedure and payer2. Prepare a gross and net revenue worksheet by procedure and payer. Hint: prepare a table for each procedure and then one for the total of all procedures.3. Prepare an expense worksheet based on the volume increases and the rate increases for each of the three types of expenses. Do not separate the expenses by procedure only by type of expens Brookside Hospital: preparing a departmental budget from the given dataBrookside Hospital’s imaging for hand, foot and forearm is a sub-unit of the Radiology department. They project ending the current year (2017) with 2,000 total procedures broken down as follows:ProcedureTime RequiredVolume proportionRate(Charge)Hand imaging10 minutes60%$100 Foot imaging20 minutes30%$300 Forearm imaging30 minutes10%$400 This sub-unit accounts for 20% of the Radiology department’s current expenses of $1,225,000 broken down as follows:ExpenseAmountLabor$425,000 Imaging Materials$300,000 Overhead$500,000 Total$1,225,000 PayerVolume proportionReimbursementMedicare50%70% of chargesMedicaid20%50% of chargesManaged care20%80% of chargesSelf Pay10%100% of charges ** 20% of the self pay result in charity carePayer Mix and Reimbursement is as follows:Budget Assumptions for 2018:· Volume increase is expected to be 10% with the same procedure mix· Due to volume increase, all three expenses are expected to increase 10%, in addition:· Labor rates are expected to increase 5% due to merit increases· The cost of Imaging materials are expected to increase 6%· Overhead rate is expected to stay the sameRequired:Prepare a professional document to present to the VP of Radiology which will include separate tables for each of the following:1. Prepare a statistics budget summary by procedure and payer2. Prepare a gross and net revenue worksheet by procedure and payer. Hint: prepare a table for each procedure and then one for the total of all procedures.3. Prepare an expense worksheet based on the volume increases and the rate increases for each of the three types of expenses. Do not separate the expenses by procedure only by type of expense.4. Prepare a summary income statement for overall revenues and expenses. Include appropriate header.Rubrics:Problem 1: 25%Problem 2: 25%Problem 3: 25%Problem 4: 25%e.4. Prepare a summary income statement for overall revenues and expenses. Include appropriate header.
Prepare a professional document to present to the VP of Radiology which will include separate tables for each of the following:1. Prepare a statistics budget summary by procedure and payer2. Prepare a
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