Sacramento Memorial Hospital has the following financial data and operational me
ID: 2650865 • Letter: S
Question
Sacramento Memorial Hospital has the following financial data and operational metrics:
Number of beds--> 250
Total inpatient stays--> 12,250
Total outpatient visits--> 90,754
Total patient revenues--> $111,900,050
Outpatient mix--> 16.2%
Medicare payment percentage(revenues)--> 28.0%
Average length of stay--> 5.8 days
Net price per discharge--> $7,653
Cost per discharge--> $6,292
a) What is the hospital's profit per discharge?
b) What is the hospital's total inpatient and outpatient revenue?
c) Verify your Part B answer for total inpatient revenue using volume and profitability metrics.
d) What are the hospital's total revenues from Medicare patients?
e) What is the total number of inpatient stays?
f) What is the hospital's occupancy rate?
Explanation / Answer
a) What is the hospital's profit per discharge?
hospital's profit per discharge = Net price per discharge- Cost per discharge
hospital's profit per discharge = 7653 - 6292
hospital's profit per discharge = $ 1361
b) What is the hospital's total inpatient and outpatient revenue?
Hospital's total inpatient revenue = Total revenue *(1-Outpatient mix)
Hospital's total inpatient revenue =111900050*(1-16.2%)
Hospital's total inpatient revenue = 93,772,241.90
Hospital's total outpatient revenue = Total revenue *Outpatient mix
Hospital's total outpatient revenue = 111900050*16.2%
Hospital's total outpatient revenue = $ 18,127,808.10
c) Verify your Part B answer for total inpatient revenue using volume and profitability metrics.
Total inpatient revenue using volume and profitability metrics = Net price per discharge*Total inpatient stays
Total inpatient revenue using volume and profitability metrics = 7653*12250
Total inpatient revenue using volume and profitability metrics = $ 93,749,250
It is approximately verified the difference is due to rounding off in percentage of outpatient mix
d) What are the hospital's total revenues from Medicare patients?
hospital's total revenues from Medicare patients = Total Revenue*Medicare payment percentage(revenues)
hospital's total revenues from Medicare patients = 111900050*28%
hospital's total revenues from Medicare patients =$ 31,332,014
e) What is the total number of inpatient stays?
total number of inpatient stays = 12250*5.8
total number of inpatient stays = 71050
f) What is the hospital's occupancy rate?
Total Inpatient can stay = 365*250 = 91250
hospital's occupancy rate = 71050/91250
hospital's occupancy rate= 77.86%
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