Phil Brummel

Phillip J. Brummel, Partner, pbrummel@bkd.com

Phillip J. Brummel, Partner, pbrummel@bkd.com

Phillip J. Brummel, CPA, Partner BKD Kansas City, has 27 years of experience at BKD.He works exclusively in the health care industry providing audit and business advisory services.Phil serves a variety of clients including hospitals, long-term care facilities, home health agencies, rehabilitation agencies and physicians.His responsibilities encompass engagement executive duties for numerous health care providers as well as Medicare and Medicaid reimbursement advisor for many clients served by the firm.Phil leads the strategic planning and financial forecasting group within the office.

Previously, Phil served as the administrative leader of the audit group within the Kansas City office, as well as partner in charge of the health care team for the Kansas City practice unit.As administrative leader of these groups his responsibilities included human resources, practice development, staff development as well as strategic positioning for the teams.

Phil served on the Health Care Committee of the American Institute of Certified Public Accountants (AICPA) for three years.In addition, Phil has served on the overall firm health care committee, a group whose function is to oversee the activities of the BKD Health Care Group that currently provides services to more than 3,500 institutional health care clients and thousands of physicians across the United States.

As a full time health care partner, Phil is a frequent author and speaker on topics ranging from Medicare reimbursement issues for hospitals to strategic planning and product development for other service providers.Currently, Phil is the leader for the strategic pricing and critical access hospital service initiatives within the Kansas City practice unit.

Phil is a member of the American Institute of Certified Public Accountants and Missouri Society of Certified Public Accountants.He received his B.A. degree in business and accounting from the University of Missouri at Kansas City.

Phil Brummel, Partner

Health Care

Middle, left to right: Barry Davis, Managing Partner; Phil Brummel, Partner.

Phil Brummel, of BKD, is currently preparing the feasibility study for the Board.

Advanced Class - Phillip J. Brummel, CPA. is the partner in charge of the health care department for the Kansas City office of BKD, LLP.Phil has over 25 years of reimbursement, audit and consulting experience in the health care field.He works with a number of different fiscal intermediaries and provides an in-depth knowledge regarding various reimbursement issues.He is a member of the Sunflower Chapter of HFMA, Kansas Hospital Association, American Institute of Certified Public Accountants and Missouri Society of Certified Public Accountants.

Phil Brummel, of BKD, the accounting firm studying the CAH's feasibility and Don Prochaska, of Prochaska and Associates, the architecture firm designing the CAH, were present at the meeting.

Brummel led off the meeting with a brief overview of the feasibility study, which will analyze the "numbers from a financial perspective."
...
"That obviously has a significant influence" in the financials, said Brummel, who expects to be able to provide the forecasted Medicare patient volume in February.

Phil Brummel, of BKD, LLP, an independent certified public accounting firm, presented a 30-page forecasted financial statement to the district, which he summarized, "In the scheme of things, you really have a project that's very strong."

The forecasted financials consider revenues, expenses, and changes to net assets for the five years following initial construction of a hospital, expected to begin in August if the voters approve the district's bond question in May, and be completed in October of 2007. "The bottom line is that for all periods (in the five-year forecast), there will be an excess of revenues over expenses," said Brummel.

A 35,000 square-foot hospital, estimated to cost $14 million, would house 15 hospital beds and offer services including inpatient and outpatient surgery, EKG and EEG monitoring, radiology, CT scanning, and laboratory, physical therapy and emergency services.

"Not only will you be able to cover the cost of the project, but you will be able to generate a positive level of cashflow," said Brummel.
...
In the same period, according to Brummel, the Medicare percentage will grow 26 percent (from 1,414 to 1,919 people). "This is exactly what you want to see when you are looking at demand for hospital services," said Brummel.
...
Estimated costs to build the hospital include $8 million for construction (plus a 5 percent "contingency" amount), $750,000 in medical equipment (Mercy Medical Center has pledged to donate equipment), $600,000 in architectural and engineering fees, and $1.8 million in working capital ("cash to get the doors open," said Brummel).

Phil Brummel, of BKD, LLP, an independent certified public accounting firm, presented a 30-page forecasted financial statement to the district, which he summarized, "In the scheme of things, you really have a project that's very strong."

The forecasted financials consider revenues, expenses, and changes to net assets for the five years following initial construction of a hospital, expected to begin in August if the voters approve the district's bond question in May, and be completed in October of 2007."The bottom line is that for all periods (in the five-year forecast), there will be an excess of revenues over expenses," said Brummel.

A 35,000 square-foot hospital, estimated to cost $14 million, would house 15 hospital beds and offer services including inpatient and outpatient surgery, EKG and EEG monitoring, radiology, CT scanning, and laboratory, physical therapy and emergency services.

"Not only will you be able to cover the cost of the project, but you will be able to generate a positive level of cashflow," said Brummel.
...
In the same period, according to Brummel, the Medicare percentage will grow 26 percent (from 1,414 to 1,919 people)."This is exactly what you want to see when you are looking at demand for hospital services," said Brummel.

In 2010, the final year of the analysis, 2,473 inpatient days are estimated (with each patient staying for an average of 3.26 days) with Medicare patients comprising 70 percent of the payer mix.For outpatients, 5,178 equivalent days are estimated, with a 50 percent Medicare payer mix.
...
Estimated costs to build the hospital include $8 million for construction (plus a 5 percent "contingency" amount), $750,000 in medical equipment (Mercy Medical Center has pledged to donate equipment), $600,000 in architectural and engineering fees, and $1.8 million in working capital ("cash to get the doors open," said Brummel).