You have been hired as the manager of a community health center. This health center provides medical care to children. One of your first tasks is to develop a static annual budget for the health center. In fact, the Board of Directors wants to see your budget by Saturday at midnight.

In order to develop an accurate static budget you know you need to get some facts. You ask around to see what kind of information you can gather. This is what you find out:

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The center pays rent of $12,000 per month.
The center has a number of full-time staff members: 4 physicians, 6 clinical staff members and 8 administrative staff members.
The center has to occasionally use part-time workers or pay overtime when patient volume is high.
The center sees about 3,000 patients per month.
Medical supply costs seem to run about $2 per patient.

Unfortunately, that’s all that you can find out on such short notice. Nobody seems to have any more information. You know that this is not enough information to build a proper static budget, so you will need to make some assumptions to get the job done. You are comfortable with making assumptions because you know that it is OK to incorporate assumptions into a budget as long as you clearly identify the assumptions when you present the budget. You also know that it is important to make assumptions that are based on reliable information. Luckily, you recall that you have an HFMA membership and access to a variety of online databases with credible information!

You go home to review your old Health Services Finance text to see if there is anything there that can help you. You find Chapter 16 and begin to read. Luckily, you come across Table 16-4 (page 185) which shows you what a typical static budget looks like. It’s all coming back to you now!….You need to show your Revenue, your Expenses, and your Net Income. You open a new Excel file and begin.

Requirement: Create an annual static budget for the health center described above using Excel. Submit the budget using the link provided below.

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