Model
CASE JONES MEMORIAL HOSPITAL
Capital Budgeting Decision Criteria
Student Version
This case deals with basic decision criteria in capital budgeting. The student version of the model is a format guide only because the objective is for students to attempt basic calculations themselves. The key to student success in this case lies in correct calculations and interpretation of the data.
Students should enter numbers, cell references, or formulae in cells that are shaded:
INPUT DATA:
Payer
Medicare
Medicaid
Blue Cross Private insurance
Managed care
Selfpay
Other
Total
Equipment cost
Equipment installation
Year number of tests per year
Years test volume growth rate
Net patient revenue inflation rate
Tests per nurse FTE
Annual nurse salary & benefits
Nurse salary & ben inflation rate
Smith MOB Year rent per year
Contractual allowances discounts,
bad debts
tablemixper test,bad debts$
