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Chapter 8: Financial Planning and Budgeting 283 Volume Assumptions: A. FFS B. Capitated lives EXHIBIT 8.3 Carroll Clinic: 2015 Operating Budget le 36,000 visits 30,000 members Number of member-months Expected utilization per le member-month 0.15 Number of visits 54.000 visits -0,000 visits C Total expected visits IL Revenue Assumptions: duct ting A. FFS S 25 per visit 36,000 expected visits B. Capitated lives 3 PMPM 360,000 actual member-months C. Total expected revenues IIL. Cost Assumptions A. Variable Costs: Labor Supplies $ 1,200,000 (48,000 hours at $25/hour) 150,000 (0o,ooo units at $1.5o/unit) Total variable costs $ 1,350,00o Variable cost per visit Fixed Costs: 15 ($1.350,000 + 90,000) B. Overhead, plant, and equipment Total expected costs S 500,000 $ 1,8 is C. V. Pro Forma Profit and Loss (P&L) Statement Revenues FFS Capitated Total $ 900,000 1,080,000 $ 1,980,000 Costs: Variable: FFS $540,000 810,000 $ 1,350,000 $ 630,000 500,000 $ 130,000 Capitated Total Contribution margin Fixed costs Projected profit Chapter 8: Financial Planning and Budgeting 283 Volume Assumptions: A. FFS B. Capitated lives EXHIBIT 8.3 Carroll Clinic: 2015 Operating Budget le 36,000 visits 30,000 members Number of member-months Expected utilization per le member-month 0.15 Number of visits 54.000 visits -0,000 visits C Total expected visits IL Revenue Assumptions: duct ting A. FFS S 25 per visit 36,000 expected visits B. Capitated lives 3 PMPM 360,000 actual member-months C. Total expected revenues IIL. Cost Assumptions A. Variable Costs: Labor Supplies $ 1,200,000 (48,000 hours at $25/hour) 150,000 (0o,ooo units at $1.5o/unit) Total variable costs $ 1,350,00o Variable cost per visit Fixed Costs: 15 ($1.350,000 + 90,000) B. Overhead, plant, and equipment Total expected costs S 500,000 $ 1,8 is C. V. Pro Forma Profit and Loss (P&L) Statement Revenues FFS Capitated Total $ 900,000 1,080,000 $ 1,980,000 Costs: Variable: FFS $540,000 810,000 $ 1,350,000 $ 630,000 500,000 $ 130,000 Capitated Total Contribution margin Fixed costs Projected profit

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