Finance Of Healthcare

Refer to the Metropolis Health System (MHS) comparative financial statements at the back of the Examples and Exercises section.

Common size the MHS Statement of Revenue and Expenses.

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Preparing a Business Plan

Assumptions

Types of assumptions required for the financial portion of a business plan typically include answers to the following questions:

Example of Typical Income Statement Assumption Information Requirements:

  • What types of revenue?
  • How many services will be offered to produce the revenue (by month)?
  • How much labor will be required (FTEs)?
  • What will the labor cost?
  • How many and what type of supplies, drugs, and/or devices will be required to offer the service?
  • What will the supplies, drugs, and/or devices cost?
  • How much space will be required?
  • What will the required space occupancy cost?
  • Is special equipment required? If so, how much will it cost?
  • Is staff training required to use the special equipment? If so, how much time is required, and what will it cost?

Refer to the course project to add a nuclear cardiac stress lab.

Identify how many of the assumption items listed in the example above can be found in the project worksheets.

Use of Excel is strongly encouraged!

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