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Fullhealth and Annual Operating Budget

Fullhealth must prepare its annual operating budget for all lines of business. Divide the budget sections amongst its members and agree upon any necessary basics for a coordinated effort. Study all submissions and collaborate to write an executive summary. Prepare the annual operating budget summary including all lines of business. Prepare a budget for each line of business. The lines of business include a health plan, three long term care assisted living facilities, and two home healthcare agencies. Make sure the budgets for each line of businesses are properly proportionate to the overall budget. They need to be 8 to 10 pagers per section.FullHealth Home Health Agencies
FullHealth Hospital - Phase 2 Task 2 IP
Budget - January - December Projected
FY 2007 FY 2008 Dollar Percent change
Actuals Budget Variance Variance

REVENUE

Premium Collections
Other Revenue
Total Revenue $52,122,000 6% increase

Deductions form Revenue

Total Net Revenue

OPERATING EXPENSES

Salaries- Nurses $1,200,000 5% increase
Wages - Regular
Wages - Overtime
Wages - Other

Employees Benefits

Total Salaries and Wages $1,200,000

Supplies - Office
Supplies - Other
Equipment Lease and Rental
Data Processing Fees
Repairs and Maintenance
Utilities
Insurance
Taxes
Depreciation
Facility/Office Lease
Dues and Subscription
Travel
New Improvements $100,000 $300,000
Total Operating Expenses

TOTAL PROFIT/LOSS
FullHealth Assistant Living
Budget - January - December Projected
FY 2007 FY 2008 Change
Actuals Budget

REVENUE 20% increase

Residential Revenue $55,573,735
Other Revenue $70,548
Total Revenue $55,644,283

Deductions form Revenue $9,984 8% increasre

Total Net Revenue $55,634,299

OPERATING EXPENSES

Salaries $6,879,883 4% increase
Wages - Regular $4,318,688
Wages - Overtime $11,295 3% increase
Wages - Other $8,098

Employees Benefits $709,175

Total Salaries and Wages $11,927,139

Supplies - Office $49,960 3% increase
Medical Supplies $31,478 5% increase
Supplies - Other $12,530
Equipment Lease and Rental $43,360 2% increase
Data Processing Fees $36,888 2% decrease
Repairs and Maintenance $28,555 3% increase
Utilities $105,895
Insurance $54,937
Taxes $30,100
Depreciation $32,895
Facility/Office Lease $38,255 2% increase
Dues and Subscription $15,230
Travel $42,789 4% decrease

Total Operating Expenses $11,740,836

TOTAL PROFIT/LOSS $43,707,160

Fullhealth Corp Total Budget
Budget - January - December Projected
FY 2007 FY 2008 Change
Actuals Budget

REVENUE 20% increase

Inpatient Revenue $166,721,200
OutPatient Revenue $55,573,735
Other Revenue $70,548
Total Revenue $222,365,483

Deductions form Revenue $65,500,000 8% increasre

Total Net Revenue $156,865,483

OPERATING EXPENSES

Salaries $6,879,883 4% increase
Wages - Regular $4,318,688
Wages - Overtime $11,295 3% increase
Wages - Other $8,098

Employees Benefits $1,709,175

Total Salaries and Wages $12,927,139

Supplies - Office $249,960 3% increase
Medical Supplies $5,031,478 5% increase
Supplies - Other $12,530
Equipment Lease and Rental $143,360 2% increase
Data Processing Fees $36,888 2% decrease
Repairs and Maintenance $128,555 3% increase
Utilities $105,895
Insurance $254,937
Taxes $30,100
Depreciation $132,895
Facility/Office Lease $38,255 2% increase
Dues and Subscription $15,230
Travel $142,789 4% decrease

Total Operating Expenses $19,250,011

TOTAL PROFIT/LOSS $137,618,472

FullHealth Home Health Agencies
Budget - January - December
FY 2007 FY 2008 Projected
Actuals Budget Change

REVENUE 15% increase

Outpatient Revenue $2,967,432
Other Revenue $6,448
Total Revenue $2,973,880

Deductions form Revenue $297,388 3% increase

Total Net Revenue $2,676,492

OPERATING EXPENSES

Salaries $429,788 4% increase
Wages - Regular $133,186 4% increase
Wages - Overtime $9,007 2% increase
Wages - Other

Employees Benefits $97,237

Total Salaries and Wages $669,218

Supplies - Office $23,566 3% increase
Supplies - Other $12,530 2% increase
Equipment Lease and Rental $0
Data Processing Fees $15,111 4% increase
Repairs and Maintenance $9,959 5% increase
Utilities $22,566
Insurance $13,535
Taxes $15,555
Depreciation $17,635
Facility/Office Lease $0
Dues and Subscription $0
Travel - mileage $82,789 3% increase

Total Operating Expenses $882,464

TOTAL PROFIT/LOSS $1,794,028

FullHealth Health Plan
Budget - January - December Projected
FY 2007 FY 2008 change
Actuals Budget

REVENUE 11% increase

Premium Collections $33,573,735
Other Revenue $60,448
Total Revenue $33,634,783

Deductions form Revenue $8,476,466 4% increase

Total Net Revenue $25,158,317

OPERATING EXPENSES

Salaries $4,297,883 4% increase
Wages - Regular $3,318,688 3% increase
Wages - Overtime $9,007
Wages - Other $8,098

Employees Benefits $609,175 3% increase

Total Salaries and Wages $8,251,858

Supplies - Office $49,960 4% increase
Supplies - Other $12,530
Equipment Lease and Rental $43,360 5% increase
Data Processing Fees $36,888 5% increase
Repairs and Maintenance $28,555
Utilities $105,895
Insurance $54,937
Taxes $30,100
Depreciation $32,895
Facility/Office Lease $251,564 4% increase
Dues and Subscription $15,230
Travel $42,789 3% decrease

Total Operating Expenses $8,956,561

TOTAL PROFIT/LOSS $16,201,756

Solution Preview

The response addresses the queries posted in 1941 words with references.
// In this paper, we will discuss about the Full health Corporation's operating budget. Before discussing the budget, a descriptive executive summary is presented in a paragraph given below. The executive summary is essential part of the learning.//

Executive Summary

This paper is based on the Full Health Corporation's operating budget. The operating budget is very necessary for the internal control of organization. The objective of this paper is to analysis of budgets by making them. The Corporation has Diversified business line. Full Health Corporation has three business lines. In the series of discussion, the operating budgets of business line are discussed. The business line deals in health planning of individual. Second business line is a long term care assisted living facilities, which has three units and third line of business is the Home Health Care Agencies.

In the first part of the operating budget, the revenues of the business lines are discussed. The revenue is forecasted with proper analysis. After that, the expenses of every business lines are explained in detailed. Every business line has its own expenses. They are not same for every business units. Some values of expenses are different from actual expense of 2007 because of management's perception. The profits of all business lines are fluctuated in different ratio according fluctuation of revenue and expense.

The operating budget of first business line is made on the previous data. The operating budget is for 2008. It is based on the 2007's actual revenues and expense. For determining the budgeted revenues figurers for 2008, the revenue of the 2007 is increased according to forecasting. For calculating the expense, the same procedure is used. In the 2008 budget, significant changes are made. The budget of 2008 for Health Planning is determined more than previous year's actual expense. In the calculation of expense, expenses are not increased or decreased. Some expense may be fluctuated are changed over the previous year' expense. Other parts of expense are same as 2007's expense.

The second line of business is long term care assisted living facilities. The operating budget of 2008 is based on 2007's actual expense. In the operating budget, the project profit is also calculated. The calculation of budgeted revenue is made using 2007's revenue. Corporation expects that the revenue of the company will increase in 2008. The forecasted revenue is more than actual revenues of 2007. The expense of 2008 is more than incurred actual expense. Some expenses are similar to the 2007 because it is assumed that they will not be increased in the future. Some expenses are found to be varied from 2007's actual expense.

After the second business line, the operating budget of the third business line Home Health Care Agencies is discussed. In this budget, the same concept is applied, which is used in other business line's operating budget. Further, the total budget of the corporation is also made. It is prepared using all operating budgets of the business lines .In the last part of the paper; the summary of the operating budgets is completed. It comprises of all operating budget's revenues and expense (Bragg, & Burton, 2006).

// Now, we will move to another part of the assignment. Under this part of the assignment, we will make operating budget for 2008 of Full Health Corporation. The operating budgets of all business units of Full Health Corporation is also discussed.//

1).

Full Health Home Health Plan

Operating Budget for 2008

Particulars
Actual 2007
Changes
Budgeted 2008
...

Solution Summary

The response addresses the queries posted in 1941 words with references.

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