SHOW ALL WORK Determine the amount of net operating income that would result for
ID: 2418744 • Letter: S
Question
SHOW ALL WORK
Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:
30 Medicare cases
pay $2,000 per case
30 Blue Cross Blue Shield cases
pay $2,200 per case
20 commercial cases
pay 100 percent of charges
10 Medicaid cases
pay average cost
8 self-pay cases
pay 100 percent of charges
2 charity cases
pay nothing
Average cost per case is expected to be $2,200, and the average charge per case is $2,500
Calculate Gross patient revenue and deductions from gross patient revenue.
30 Medicare cases
pay $2,000 per case
30 Blue Cross Blue Shield cases
pay $2,200 per case
20 commercial cases
pay 100 percent of charges
10 Medicaid cases
pay average cost
8 self-pay cases
pay 100 percent of charges
2 charity cases
pay nothing
Average cost per case is expected to be $2,200, and the average charge per case is $2,500
Explanation / Answer
Charges from Patients Amount $ Medicare cases 30*2000 60000 Blue Cross Blue Shield cases 30*2200 66000 commercial cases 20*2500 50000 Medicaid cases 10*2200 22000 self-pay cases 8*2500 20000 charity cases 0 0 Gross patient revenue 218000 Less: Average cost per case 22000 Less: Average charge per case 70000 92000 Net patient revenue 126000
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