The construction cost of the ASC is $200 per square foot. Equipment is 25%% of the construction cost. You are to create an original spreadsheet for the cash flow budget on a monthly basis for 36 months.
1. 2,200 square feet per OR.
2. 6 ORs
3. Bad Debt 5%
4. FTEs 6 per 1,000 cases Salary $45,000 per FTE. Benefits 22%.Clinical supplies 15% of Net Revenue
5. Collections 40% of Billings
6. Net Revenue $3,700 per case
7. Purchased services $60,000 per month
8. Management Fee 6% of Net Revenue
9. Malpractice $40,000 per year
10.Other Expenses $60,000 per year
11.800 cases per OR
12.Janitorial $.30 per square foot per month
13.Utilities $.36 per square foot per month
14.Lease payment is the sum of the monthly payment for the building financing and the equipment financing.
15.Building cost per square foot $200
16.Interest on building loan is 6.5% on a 10 year note.
17.Interest rate on the equipment is 8.5% for a 7 year note.
18.Equipment cost is 25% of the building cost.
19.Student determines the ramp up of the cases per month.