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You are the practice administrator for Valley Podiatry and are preparing your operating budget for the new year that starts April 1, 2022. Valley Podiatry just provides 1 service: diagnosing foot pain and making shoe inserts to correct problems. They perform 2000 services per year 40% of the patients are covered by Medicare, 60% are covered by commercial insurance Medicare pays $200 for the foot exam and inserts. Commercial insurance pays $300. Valley Podiatry's rent is $2,500 per month Utilities are $250 per month Valley Podiatry employs 1 podiatrist who provide all exams and oversees making the shoe inserts and 1 technician who assists in making the shoe orthotic inserts. The podiatrist is paid $130,000 per year The technician is paid $40 per service Supplies for making the inserts are $75 per service What is Valley Podiatry's Operating Budget for 2022? 2022 comes to a close and Valley Podiatry is reviewing their books. They see that they actually provided 2300 services. 55% of the patients were covered by Medicare and 45% were covered by commercial insurance. Medicare changed their reimbursement rate and actually paid $195 for their service. Because of supply chain issues, the price of the supplies to make the inserts was $80 per service. All other assumptions from the projected budget were the same

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