As an executive of RCH, which statement is most accurate related to…
QuestionAnswered step-by-stepAs an executive of RCH, which statement is most accurate related to…As an executive of RCH, which statement is most accurate related to gross revenue?D? A. ICU charges are down 10% from last year – that is my most significant concern, and I need to address the issue B. What a great year for the surgery department! I need to find out what caused this excellent result and do what I can to make sure surgery revenue stays the same or even grows further. C. What a great year for the surgery department! The increase from FY 2019 must be because patient acuity increased. I need to do what I can to make sure surgery revenue stays the same or grows further. D. A and B E. A and CComparative Income StatementFor the Fiscal Year Ended June 30, 2020 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Variance from % Prior Year VarianceRevenue Surgical Procedures $5,000,000 $5,250,000 $5,512,500 $5,788,125 $7,235,156 $1,447,031 25.0%ICU Charges $2,000,000 $2,040,000 $2,080,800 $2,122,416 $1,910,174 ($212,242) -10.0%Skilled Unit Charges $3,000,000 $3,090,000 $3,182,700 $3,278,181 $3,376,526 $98,345 3.0%Medical Supplies $500,000 $525,000 $551,250 $578,813 $520,931 ($57,881) -10.0% Gross Patient Care Revenue $10,500,000 $10,905,000 $11,327,250 $11,767,535 $13,042,788 $1,275,254 10.8% Contractual Allowance $3,150,000 $3,271,500 $3,964,538 $4,118,637 $4,564,976 $446,339 10.8%Allowance for Bad Debt $525,000 $545,250 $566,363 $588,377 $652,139 $63,763 10.8% Total Revenue Offsets $3,675,000 $3,816,750 $4,530,900 $4,707,014 $5,217,115 $510,101 10.8% Net Patient Care Revenue $6,825,000 $7,088,250 $6,796,350 $7,060,521 $7,825,673 $765,152 10.8% Gift Shop Sales $125,000 $125,000 $115,000 $105,000 $98,000 ($7,000) -6.7%Cafeteria Revenue $380,000 $387,600 $395,352 $403,259 $411,324 $8,065 2.0%Parking Fees $80,000 $82,400 $84,872 $87,418 $90,041 $2,623 3.0% Total Auxiliary Revenue $585,000 $595,000 $595,224 $595,677 $599,365 $3,688 0.6% Total Net Revenue $7,410,000 $7,683,250 $7,391,574 $7,656,198 $8,425,038 $768,840 10.0%% of Gross Patient Care Revenue 70.6% 70.5% 65.3% 65.1% 64.6% Expenses Nursing Staff $3,800,000 $3,895,000 $3,992,375 $4,591,231 $5,279,916 $688,685 15.0%Other Clinical Staff $1,300,000 $1,332,500 $1,365,813 $1,399,958 $1,434,957 $34,999 2.5%Auxiliary Staff $455,000 $466,375 $478,034 $489,985 $502,235 $12,250 2.5%Administrative Staff $600,000 $615,000 $630,375 $646,134 $662,288 $16,153 2.5% Total Staff Expense $6,155,000 $6,308,875 $6,466,597 $7,127,309 $7,879,395 $752,087 10.6% % of Gross Patient Care Revenue 58.6% 57.9% 57.1% 60.6% 60.4% Medical Supplies $200,000 $210,000 $220,500 $231,525 $182,326 ($49,199) -21.3%General Supplies $45,000 $46,575 $48,205 $49,892 $51,639 $1,746 3.5%Utilities $98,000 $101,430 $104,980 $108,654 $112,457 $3,803 3.5%Maintenance & Repair $450,000 $465,750 $482,051 $498,923 $516,385 $17,462 3.5%Grounds $268,000 $277,380 $287,088 $297,136 $307,536 $10,400 3.5%Space Rental $50,000 $51,750 $53,561 $55,436 $57,376 $1,940 3.5%Non-Capital Equipment Expense $60,000 $62,100 $64,274 $66,523 $68,851 $2,328 3.5%Depreciation Expense $0 $0 $100,000 $100,000 $100,000 $0 0.0%Other Misc $75,000 $75,000 $75,000 $75,000 $75,000 $0 0.0% Total Non-Staff Expense $1,246,000 $1,289,985 $1,435,659 $1,483,090 $1,471,571 ($11,519) -0.8% % of Gross Patient Care Revenue 11.9% 11.8% 12.7% 12.6% 11.3% Total Expenses $7,401,000 $7,598,860 $7,902,256 $8,610,399 $9,350,966 $740,567 8.6%% of Gross Patient Care Revenue 70.5% 69.7% 69.8% 73.2% 71.7% Net Income (Loss) $9,000 $84,390 ($510,682) ($954,201) ($925,928) $28,273 -3.0%% of Gross Patient Care Revenue 0.1% 0.8% -4.5% -8.1% -7.1% AccountingBusinessFinancial AccountingFIN 101Share Question
