Health 3 short questions

Based on the following information, answer the questions shown below regarding a budget for year 2:

  • Recent merit pay increases (usually 0- 5% provided annually) have resulted in the following salaries:
    • 2 coder salaries each at $15/hour
    • 1 coder salary at $14.50/hour
    • Lead coder salary of $50,000/year
    • 2 release of information specialists each at $13/hour
    • Director salary of $75,000/year
    • Physician record assistant salary at 14/hour
    • Credentialing specialist salary of $37,000/year
    • 2 data quality analyst salaries at $15/hour
    • Scanning clerk salary at $12/hour
  • Additional equipment was obtained in month 6 at a rental rate of $200/month.
  • The ability to fax records electronically will be available at the start of budget year 2.
Budget Year 1 Actual Year 1 YTD

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3rd Quarter

Record release fee income $150,00 $125,000
Salaries (including overtime) $375,000 $300,000
Benefits $550,000 $425,000
Contracted audits $100,000 $50,000
Equipment rental $4,000 $3,200
Supplies $5,000 $4,500
Education $6,000 $3,000
Postage $2,000 $1,250


For the coming year, which would be the most appropriate kind of budget for this department, fixed budget or variable budget?

For the option you chose in question number one, fixed budget versus variable budget, explain why you chose that option.

Explain how you would estimate total salaries for the coming year.

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