As the Manager of the Bronxville location of the Metropolitan Clinic, you

As the Manager of the Bronxville location of the Metropolitan Clinic, you
have been assigned to complete the 2017 operating expense budget. This
clinic provides primary care to patients of all ages. It has contracts in
place with all of the major payers as well as all of the Medicaid Managed
Care providers currently licensed in NY State.



In preparing your budget for next year you have been given several
assumptions, as follows:



· Salaries, benefits and taxes will increase by 4.2% with no
adjustment for volume changes.

· Budgeted amounts for rent and physician services are fixed by
contract and in 2017 will equal 2016 levels.

· The cost of Drugs is expected to increase by 8.9%

· All other items are expected to increase by 5%.

· No more money is available in 2016 to spend on office equipment, but
an additional $5,000 in medical equipment will be spent in the remainder of
2016. The medical and office equipment budgets for 2017 will equal the
2016 projected actual.



The data you have been provided for the current year, 2016, is actual
expense thru August.