Financial Control and Planning

PART 2: GROUP COURSEWORK
SECTION 1

1. Calculate patient revenue (on an accrual basis) for the coming year.

As indicated in the question, Private insurance and Self-Pay pay full charge, so we need to make a price list for these two types of payers and calculate the special price for NHS.
- Oncology Program:
Revenue from Private insurance = 50000*120*30% = 1,800,000
Revenue from National Health Service funded = 40,000*120*50% = 2,400,000
Revenue from Self-Pay = 50000*120*10% = 600,000
Total revenue for Oncology Program =1,800,000+600,000 +2,400,000= 4,800,000 * Cardiac Program:
Revenue from Private insurance = 40000*80*20% = 640,000
Revenue from National Health Service funded = 30,000*80*60% = 1,440,000
Revenue from Self-Pay = 40000*80*10% = 320,000
Total revenue for Cardiac Program = 640,000+ 1,440,000+ 320,000 = 2,400,000 * Rhinoplasty Program:
Revenue of Private insurance = 25,000*40*10% = 100,000
Revenue of National Health Service funded = 10,000*40*20% = 80,000
Revenue of Self-Pay = 25,000*40*60% = 600,000
Total revenue forRhinoplasty Program = 100,000 + 80,000 +600,000 = 780,000 Program | List price per patient | Special price per patient NHS | Total number of patients | PrivateInsurance | National Health Service funded | Self – Pay | Total per program | Oncology | 50,000 | 40,000 | 120 | 1,800,000 | 2,400,000 | 600,000 | 4,800,000 | Cardiac | 40,000 | 30,000 | 80 | 640,000 | 1,440,000 | 320,000 | 2,400,000 | Rhinoplasty | 25,000 | 10,000 | 40 | 100,000 | 80,000 | 600,000 | 780,000 | | | 2,540,000 | 3,920,000 | 1,520,000 | 7,980,000 |

2. Calculate the endowment revenue (on an accrual basis) for the coming year

* Total interest income from £500,000 in UK Treasuries dated 2020 – 2025 at 6% per annum = £500,000* 6% = £30,000 * Total dividend income from £250,000 in BT preference shares which pay 8% per annum = £250,000 * 8% = £20,000 * Total bond income from £250,000 bond at 2%( 1,5% + 0.5%) in the