The Twin Rivers Café

THE TWIN RIVERS CAFÉ
The Twin Rivers Café

The Twin Rivers Café2
Table of Contents
THE TWIN RIVERS CAFÉ...........................................................................................................................................1
Objective of preparing a budget for Twin Rivers Café.............................................................................................3
Company’s Revenue and Spending Variance for July..............................................................................................3
Management and Activity.........................................................................................................................................4
Advise the Twin Rivers Café....................................................................................................................................6
REFERENCE..................................................................................................................................................................8

The Twin Rivers Café3
The Twin Rivers Café
Objective of preparing a budget for Twin Rivers Café
The cafe had 2 years and 9 months to gain the volume of customer and complexity to
secure an amicable rate. Temporary rates were established so that the cafe could operate while
building their base. The budget under which they operate currently is considered a modified
version of the GBR. Once the base is established the rates will change. The Twin Rivers cafes
under the Global Budget, know what the revenue will be at the beginning of the fiscal year. The
cafe’s revenue is determined by a historical base which is adjusted to inflation, infrastructure
requirements volume increases in population, changes in payer mix, and quality-based programs.
The HSCRC sets the rates of each cafe based on care Prospective Payment System. The Twin
Rivers Café is paid on per case basis but the state negotiates the rates with the payers for one rate
across all payers. These rates apply to inpatient and outpatient cases. Each cafe has a capped
amount in which they can charge. If the charges exceed the capped budget, there are penalties
and if they are too low the rates can be adjusted at a lower rate. The goal is to maintain the
budgeted amount in charges at the end of the fiscal year(Winters, 2018). It also wants to improve
its condition and increasing revenue which is other goal for which it will require to perform
several activities.
Company’s Revenue and Spending Variance for July
The cafes are given a predetermined budgeted amount they can charge for services in a
year. The reimbursement is not limited so, it is important to receive every dollar that can be
collected. Charity and bad debt are budgeted into the number to assist with some of the write-
offs. These are expected to occur. Billing is timely because each insurance payer has a different
timely filing agreement with the cafe. Some are 30, 60, and 90 days while Food is a year from