HMFP/APHMFP Finance Department

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HMFP/APHMFP has its own Finance Department, which is overseen by our HMFP/APHMFP CFO. The HMFP/APHMFP Finance Department is responsible for physician payroll, accounts payable, monthly financial statements, annual tax filings, mission based management reports, quarterly productivity reports, interfacing with the ten external billing companies, and the annual HMFP/APHMFP budget process.

The HMFP/APHMFP annual budget is $250 million and the budget process starts in the late spring, once six months of actual fiscal year data is available (Oct-March). A key part of the HMFP/APHMFP budget process is coordinating the $45 million funds flow from BIDMC. These payments are for medical education teaching, physician administrative duties, recruitment commitments, and certain patient services billed by BIDMC and paid to HMFP/APHMFP.

The other key element of the annual budget process is the projection of annual volume and revenues, research grant revenue and other operating revenues, staffing, salaries and benefits, and other operating expenses. Certain expenses are paid by BIDMC and then reimbursed by HMFP/APHMFP. These include the cost of support staff, rent, parking, and malpractice insurance premiums.

The HMFP/APHMFP budget package is on an electronic spreadsheet template. It is completed by the Department Administrator/Chief during the summer, and then reviewed with the HMFP/APHMFP CFO before being reviewed by the HMFP/APHMFP Finance Committee and Board, and ultimately approved by the CareGroup Finance Committee/Board in September.

The expectation is that every Department submits a budget that is at least break-even and to achieve at least break-even operating results. There is no cross subsidization between Departments. Departments that do not submit a break-even budget receive assistance from the CFO and CEO.

The HMFP/APHMFP Finance Committee reviews and monitors the monthly operating results of each Department. Departments that experience negative financial results during the year are required to develop a recovery action plan and to present it to the Finance committee. Departments that are unable to develop a recovery plan receive assistance from the CFO and CEO.

HMFP/APHMFP also prepares an annual capital budget of approximately $500,000, which consists mostly of computers and office furniture. Most medical equipment and facilities' renovations are budgeted by BIDMC.