The radiology department at Best Medical Care is developing a budget for DRG 250: Fracture, Sprain, Strain, and Dislocation of Forearm, Hand, and Foot. This year the department saw 2,200 admissions for DRG 250 analyzed in the following way: 40% for a hand X-ray (which takes five minutes); 30% for a foot X-ray (which takes 15 minutes); and 30% for a forearm X-ray (which takes 15 minutes). The budget committee is projecting a 12.1% change in DRG 250 for next year analyzed in the same proportions as this year. The controller states that the charge for a hand X-ray will be $100, for a foot X-ray will be $300, and for a forearm X-ray will be $500. The controller also projects the payer analysis for DRG 250 to be 40% Medicare (DRG rate is 75% of charges), 30% Medicaid (DRG rate is 65% of charges), 20% managed care (discount is 25% of charges), and 10% self-pay (self-pay patients pay full charges—20% of self-pay results in charity care).
DRG 250 accounts for 30% of the radiology department’s labor, supply, and overhead expenses. The department’s labor expenses are $500,000—labor expenses are expected to increase 4% next year due to raises. The department’s nonlabor expenses are $200,000—nonlabor expenses are expected to increase 6% next year due to inflation. The department’s overhead to increase next year as well. Using the budgeting steps, calculate the volumes, collected revenues, expense, and adjustments for DRG 250 in the radiology department for next year.
Submit an Excel spreadsheet that shows detailed calculations and/or a Word document that includes answers