How can I turn this into a line-item budget for personnel cost, a functional budget to calculate personnel costs per MRI procedures, and also a program (clinic) budget for providing health care services for 3000 patient visits? Someone please help I'm confused.
o Cost of purchasing an MRI machine: $1,200,000
o Annual cost of hiring new radiologist to provide professional service: $500,000
o Annual maintenance and warranty: $30,000
o Additional office space to accommodate MRI: 5,000 SF; rent is $20/SF
o Hiring four additional technical staff at $60,000 per FTE
o Other operating expenses: $50,000
o Projected number of MRI procedures per year: 10,000
To create a line-item budget for personnel costs, a functional budget to calculate personnel costs per MRI procedure, and a program (clinic) budget for providing health care services for 3000 patient visits, you'll need to follow these steps:
1. Line-Item Budget for Personnel Costs:
- Identify all personnel costs associated with running the clinic, including salaries, benefits, and any additional costs related to personnel.
- Break down each cost item into specific line items. For example:
- Radiologist Salary: $500,000
- Technical Staff Salaries: $240,000 ($60,000 per FTE * 4 FTEs)
2. Functional Budget to Calculate Personnel Costs per MRI Procedure:
- Determine the average number of MRI procedures per year. In this case, it's mentioned as 10,000.
- Divide the total personnel costs (as calculated in step 1) by the projected number of MRI procedures to get the personnel cost per procedure.
- Personnel Cost per MRI Procedure = (Total Personnel Costs) / (Projected Number of MRI Procedures)
3. Program (Clinic) Budget for Providing Health Care Services for 3000 Patient Visits:
- Determine the anticipated number of patient visits per year. In this case, it's mentioned as 3000.
- Calculate the budget for providing health care services by including all the associated costs:
- MRI Machine: $1,200,000
- Hiring a Radiologist: $500,000
- Maintenance and warranty: $30,000
- Additional Office Rent: 5,000 SF * $20/SF
- Additional Technical Staff Salaries: $240,000 ($60,000 per FTE * 4 FTEs)
- Other operating expenses: $50,000
- Sum up all these costs to create the program budget for providing health care services.
By following these steps, you'll be able to create a line-item budget for personnel costs, a functional budget to calculate personnel costs per MRI procedure, and a program budget for providing health care services for 3000 patient visits.