The document provides financial projections for a proposed MRI facility over three years. It projects gross revenue, net revenue accounting for a 20% reduction in volume, and total operating expenses. It estimates that the net income would be 35.38%, 34.94%, and 37.03% of net revenue in years 1 through 3 respectively. Staffing needs, salaries, and other expenses are detailed. Revenue projections are provided based on estimated procedure volumes and reimbursement rates.

1. DRAFT Year 1 Year 2 Year 3
Gross Revenue@Payor $ $1,075,567 $1,152,639 $1,335,162
MRI Revenue
Bad Debt $53,778 $57,632 $66,758
Total Net Revenue Includes $806,789 $865,007 $1,001,404
20% reduction in volume
Operating Expenses
Direct Salaries Expense $150,913 $155,440 $160,103
Payroll Taxes $11,507 $11,852 $12,208
Radiologist Expense $154,480 $183,260 $238,238
Equipment Depreciation $68,000 $68,000 $68,000
Personal Property Tax Expense $8,500 $8,500 $8,500
Leasehold Amortization $42,500 $44,625 $46,856
Training Costs $8,706 $- $-
Occupancy Related Costs $54,000 $56,700 $59,535
Office Related Costs $9,125 $9,581 $10,060
Clinical Related Costs $13,622 $14,809 $17,077
MRI Maintaince Fee Expense $- $10,000 $10,000
Total Operating Expenses $521,353 $562,768 $630,578
Gross Income $285,435 $302,239 $370,826
Percent 35.38% 34.94% 37.03%

2. Salaries Increase 3% per Year
Occupancy & Office Cost Increase 5% per year

3. Staffing Salary Benefits Total Cost
MRI tech $66,650 125% $83,312.50
MRI Asst $29,120.00 125% $36,400.00
Front office $24,960 125% $31,200.00
Total $150,912.50
Payroll taxes and benefits 7.6250% $11,507.08
Flat Rate per study 1 2 3
Reading by Radioloigist $80.00 $154,480 $183,260 $238,238
Equipment depreciation per year
1.5 Magnet - refurbished $340,000 $68,000.00
Personal property Tax 2.50% $8,500.00
Sq Feet Cost per Sq Ft Total
Space programming 2500 $85.00 $212,500.00
Ammortization of Leasehold Improvements Total
$42,500.00
Hours Cost of Training
Training Costs 120 $8,706.49
Occupancy Costs
Sq Feet Rate Total Cost
Lease of Building 1,500 $23.00 $34,500.00
Sq Ft Rate
Utilities 1,500 $5.00 $7,500.00
Insurance $2,400.00
Janitorial $6,000.00
Repairs - Maintaince $3,600.00
Total Occupancy $54,000.00
Office Related Costs
Supplies Administrative $2,500.00
Copier / Fax and Supplies $975.00
Prinitng Forms $2,000.00
Telephone / Data Conectivity $2,400.00
Postage $750.00

4. Computer $500.00
Total Office Related Expense $9,125.00
Clincal Related Expenses 1 2 3
Technecial Supplies $3,500.00 $3,500.00 $3,500.00
Laundry and Linen $3,750.00 $3,750.00 $3,750.00
Transcription and Dictation Volume $0.00
$3.30 $6,372.30 $7,559.48 $9,827.32
Total Clinical Related Expenses $13,622.30 $14,809.48 $17,077.32
Year 1 Year 2 Year 3
MRI Maintaince Fees 0 $10,000.00 $10,000.00

7. DRAFT Improvement
Amount 1 2 3 170%
Bad Debt 5% $53,778 $57,632 $66,758
YEAR 1
Code Description Total Prof Tech Code Volume Revenue
72141 C-spine w/o contrast Aymond, Deol, McIntosh $469.69 $79.72 $389.97 72141 212 $118,084.00
72142 C-spine w/ contrast $563.73 $95.89 $467.84 72142
72146 T-spine, w/o contrast Aymond $512.63 $79.72 $432.91 72146 21 $11,697.00
72147 T-spine, w/ contrast $563.39 $95.55 $467.84 72147
72148 L-spine, w/o contrast Aymond, Deol $506.72 $73.81 $432.91 72148 328 $182,696.00
72149 L-spine, w/ contrast $556.91 $89.07 $467.84 72149
72156 C-spine w/w/o contrast $994.39 $128.12 $866.28 72156
72157 T-Spine w/w/o contrast $993.90 $127.63 $866.28 72157
72158 L-Spine w/w/o contrast $983.90 $117.63 $866.28 72158
72195 Pelvis w/o contrast $460.59 $72.71 $387.88 72195
72196 Pelvis w/ contrast $551.31 $86.16 $465.15 72196
72197 Pelvis w/w/o contrast $972.78 $112.33 $860.45 72197
73218 Upper extremity, non-joint, w/o contrast $454.01 $67.03 $386.98 73218
73219 Upper extremity, non-joint, w/ contrast $545.22 $80.82 $464.41 73219
73220 Upper extremity, non-joint, w/w/o contrast $966.39 $107.14 $859.26 73220
73221 Upper extremity, joint, w/o contrast McIntosh, Graham $454.01 $67.03 $386.98 73221 289 $160,973.00
73222 Upper extremity, joint, w/ contrast $544.88 $80.48 $464.41 73222
73223 Upper extremity, joint, w/w/o contrast $966.39 $107.14 $859.26 73223
73718 Lower extremity, non-joint, w/o contrast $454.01 $67.03 $386.98 73718
73719 Lower extremity, non-joint, w/ contrast $544.88 $80.48 $464.41 73719
73720 Lower extremity, non-joint, w/w/o contrast $966.05 $106.80 $859.26 73720
73721 Lower extremity, joint, w/o contrast Shereff, Boyer, Caldwell, Graham $454.01 $67.03 $386.98 73721 1,081 $602,117.00
73722 Lower extremity, joint, w/ contrast $544.88 $80.48 $464.41 73722
73723 Lower extremity, joint, w/w/o contrast $966.39 $107.14 $859.26 73723
$90.02 $562.61
$666.29 1931 $1,075,567
215113.4
$860,454

8. Improvement
125% 130%
YEAR 2 YEAR 3
Volume Revenue Volume Revenue
142 $79,094.00 185 $261,617.33
26 $285,534.91 34 $285,534.91
410 $282,243.04 533 $282,243.04
361 $252,883.57 470 $252,883.57
1351 $252,883.57 1,757 $252,883.57
2291 $1,152,639 2978 $1,335,162
$230,528 $267,032
$922,111 $1,068,130