Using the budget information from Unit 1 and the financial plan and operational budget from the Unit 4 Intellipath Assignment, discuss the need for the following:

• Increase in revenue reimbursement through inpatient length of stay and outpatient vendor relationships
• Allocation for the proposed improvements and required partnerships
• Partnering with local skilled nursing facilities and home health organizations
• Increase in salaries

• KRONA HOSPITAL OPERATING BUDGET FOR 20XX
  Revenues
  	Inpatient					$ 27,500,000
  	Outpatient					17,250,000
  	Emergency Room					10,000,000
  	Laboratory					5,000,000
  	Pharmacy					1,575,000
  	Home Health and Hospice					1,725,000
  	Ambulance Services					950,000
  	Substance Abuse					250,000
  	Other					850,000
  Subtotal						$ 65,100,000
  	Less Chartiy Care					18,000,000
  Net Revenues						$ 47,100,000
  Expenses
  	Payroll (including nursing salaries)					$ 13,750,000
  	Benefits					3,300,000
  	Contract Labor					100,000
  	Insurance					300,000
  	General Services (laundary, security, etc)					3,000,000
  	Depreciation					1,500,000
  	Interest Expense					300,000
  	Professional Services					10,000,000
  Total Operating Expenses						$ 32,250,000
  Net Income						$ 14,850,000