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 One – Financial Forecasting Model
Contains a completed financial forecasting model by downloading:
NUR4327-Deliverable03-Financial-Forecasting-Memo-Template_Revised.xlsx

Calculate the income projected from each payer source and total for the year to compare next year’s revenue to this year’s revenue.
Provide your nurse manager with your estimates on the increase/ decrease in revenue for next year’s budgeting.

Sample Solution