Assignment
Competency
o Apply the principles of economics as they relate to nursing and healthcare.
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 A: Financial Forecasting Model
1) Contains a completed financial forecasting model by downloading the Financial Forecasting Model to:
2) Calculate the income projected from each payer source and total for the year to compare next year's revenue to this year's revenue.
3) Provide your nurse manager with your estimates on the increase/ decrease in revenue for next year's budgeting.
Part B: Financial Forecasting Memo
1) Explains how the change in payer mix will impact the overall projected revenue of the unit.
2) Describes the financial impact of a changing payer mix.
3) Lists recommendations for the manager to consider in expenses, so that the budget will balance as neutral.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.