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Deliverable 3 – Financial Forecasting Memo
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Assignment Content
1.
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Competency
Apply the principles of economics as they relate to nursing and healthcare.
Student Success Criteria
View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.
Scenario
The nurse manager in orthopedics has asked for your assistance with a finance project. She is being asked to estimate revenue for the next fiscal year based on the projected number of hip replacements increasing from 300 this year to 340 next year.
The nurse manager must also factor in the expected changes in sources of revenue by payer. It is estimated that the hospital will lose some contracted insurers due to local competition, and see an increase in Medicare and Medicaid patients due to area demographics and economic conditions. She has provided you with the numbers from this year’s budget and the projections on numbers and payment amounts for next year.
Instructions
Prepare a financial forecasting memo to your nurse manager that:
Part One – Financial Forecasting Model
· Contains a completed financial forecasting model by downloading:
NUR4327-Deliverable03-Financial-Forecasting-Memo-Template_Revised.xlsx
· Calculate the income projected from each payer source and total for the year to compare next year’s revenue to this year’s revenue.
· Provide your nurse manager with your estimates on the increase/ decrease in revenue for next year’s budgeting.
Part Two – Financial Forecasting Memo
· Explains how the change in payer mix will impact the overall projected revenue of the unit.
· Describes the financial impact of a changing payer mix.
· Lists recommendations for the manager to consider in expenses, so that the budget will balance as neutral.
· Provides stated ideas with professional language and attribution for credible sources with correct APA citation, spelling, and grammar in the memo.
Resources
Library Databases
·
Health Policy Reference Center
Guides & FAQs
·
Memo FAQ
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NUR4327-Deliverable03-Financial-Forecasting-Memo-Template_Revised.xlsx
|
Prior Year Revenue Budget |
|
300 patients |
|
|
|
Source of Payment |
Percent |
Number |
Payment |
Income |
|
Medicare |
34% |
102 |
22,436 |
2,288,472 |
|
Medicaid |
11% |
33 |
18,400 |
607,200 |
|
Contracted Insurance |
45% |
135 |
29,540 |
3,987,900 |
|
Non-contracted Insurance |
3% |
9 |
32,350 |
291,150 |
|
ACA Plans |
5% |
15 |
16,400 |
246,000 |
|
Self-pay |
2% |
6 |
17,400 |
104,400 |
|
Total |
100% |
300 |
7,525,122 |
|
|
Next Year Revenue Projections |
|
340 patients |
|
|
|
Source of Payment |
Percent |
Number |
Payment |
Income |
|
Medicare |
42% |
143 |
22,463 |
|
|
Medicaid |
18% |
61 |
18,400 |
|
|
Contracted Insurance |
18% |
61 |
29,549 |
|
|
Non-contracted Insurance |
1% |
3 |
32,350 |
|
|
ACA Plans |
18% |
61 |
16,400 |
|
|
Self-pay |
3% |
11 |
16,400 |
|
|
Total |
100% |
340 |
|
|
|
To be cut from the budget to serve same number of patients (Will this result in a financial loss or gain?) |
|
Memorandum
Student Name
Rasmussen University
COURSE#: NUR4327CBE
Mindy Fadell
Date:
*Remember not to copy or paste from references or use student websites with examples of their work for the creation of this Deliverable
Memorandum
To: who will you send it to- out their name and title here
From: your name
Date:
Re: Financial Forecast or whatever title you want here
First paragraph – Explains how the change in payer mix will impact the overall projected revenue of the unit. This means you will want to explain
· What type of insurance/payment is increasing
· What kind is decreasing?
· Is there a loss of money or a gain of money?
Second paragraph- Describes the financial impact of a changing payer mix.
· Since the components of your payer mix has changed, how does that influence your budget?
· If the payment for each payor the same or different? If different, then who reimburses more or less?
· Did the number of patients increase? If so, did that help increase your revenue (the amount paid to you) ? Why or why not?
· Reference support here would be helpful.
Third paragraph- Lists recommendations for the manager to consider in expenses, so that the budget will balance as neutral.
· Think of supplies, staffing, things patients might need to get you started
References
Add supporting resources here
·
· criterion 1
0% of total grade
A – 4 – Mastery
Completed financial forecasting model with correct calculations and comparisons.
0
B – 3 – Proficiency
Completed financial forecasting model with minimal errors in calculations and comparisons.
0
C – 2 – Competence
Completed financial forecasting model with errors in calculations and comparisons.
0
F – 1 – No Pass
Incomplete financial forecasting model or numerous errors in calculations and comparisons.
0
I – 0 – Not Submitted
Not Submitted
0
· Criterion 2
0% of total grade
A – 4 – Mastery
Exemplary explanation of how the change in payer mix will impact the overall projected revenue of the unit with comprehensive supporting details.
0
B – 3 – Proficiency
Accurate explanation of how the change in payer mix will impact the overall projected revenue of the unit with supporting details.
0
C – 2 – Competence
Basic explanation of how the change in payer mix will impact the overall projected revenue of the unit with minimal supporting details.
0
F – 1 – No Pass
Confusing or incomplete explanation of how the change in payer mix will impact the overall projected revenue of the unit missing supporting details.
0
I – 0 – Not Submitted
Not Submitted
0
· Criterion 3
0% of total grade
A – 4 – Mastery
Exemplary description of the financial impact of a changing payer mix with comprehensive example(s).
0
B – 3 – Proficiency
Accurate description of the financial impact of a changing payer mix with example.
0
C – 2 – Competence
Basic description of the financial impact of a changing payer mix with minimal example.
0
F – 1 – No Pass
Confusing or incomplete description of the financial impact of a changing payer mix missing example.
0
I – 0 – Not Submitted
Not Submitted
0
· Criterion 4
0% of total grade
A – 4 – Mastery
Exemplary recommendations for the manager to consider in expenses, so that the budget will balance as neutral with comprehensive example(s).
0
B – 3 – Proficiency
Accurate recommendations for the manager to consider in expenses, so that the budget will balance as neutral with example.
0
C – 2 – Competence
Basic recommendations for the manager to consider in expenses, so that the budget will balance as neutral with minimal example.
0
F – 1 – No Pass
Confusing or incomplete recommendations for the manager to consider in expenses, so that the budget will balance as neutral missing example.
0
I – 0 – Not Submitted
Not Submitted
0
· Criterion 5
0% of total grade
A – 4 – Mastery
Provided stated ideas with professional language and attribution for credible sources with correct APA citation, spelling, and grammar in the memo.
0
B – 3 – Proficiency
Provided stated ideas with professional language and attribution for credible sources with minimal APA citation, spelling, and grammar errors in the memo.
0
C – 2 – Competence
Attempted to provide stated ideas with professional language and attribution for credible sources with some APA citation, spelling, and grammar errors in the memo.
0
F – 1 – No Pass
Provided confusing ideas with an attempt at professional language and attribution for credible sources with numerous APA citation, spelling, and grammar errors in the memo.
0
I – 0 – Not Submitted
Not Submitted
