5. Explain what you see in this table: New York Presbyterian Hospital Year 1 Yea

Question

5. Explain what you see in this table:

New York Presbyterian Hospital

                                                Year 1                         Year 2                         Difference

Current Liabilities                    $100,000         20%     $500,000         25%     $50,000           50%

Long-term liabilities                 $400,000         80%     $1,500,000      75%     $50,000           12.5%

Total liabilities                          $50,0,000        100%   $2,000,000      100%  

6. What is a contractual allowance?

7. Complete the contractual allowance for each payer for a MRI scan.

Payer              Gross Charge             Net Revenue               Contractual allowance

#1                    $1,000                         $700                            a

#2                    $1,000                         $900                            b

#3                    $1,000                         $850                            c

a.

b.

c.

Explanation / Answer

5) From the table, we can conclude the following:

Total liabilities have increased over last one year by 400% which is alarming. Either hospital as taken some debt or its account payables have increased as both the current and long term liabilities are increasing.

6) Contractual allowance is difference between the the amount that is billed by the hospitals and what they actually recieve.

Contractual Allowance = Gross charge - amount recieved from patient

7) Payer              Gross Charge             Net Revenue               Contractual allowance

#1                    $1,000                         $700 $ 300

#2                    $1,000                         $900 $ 100

#3                    $1,000                         $850 $ 150

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