Good Will General Hospital is introducing a new service that anticipates to have 550 patient visits...

Good Will General Hospital is introducing a new service that anticipates to have 550 patient visits per year at an average cost per visit of $2,200 and average billed charges per visit of $4,500.

Determine the amount of gross revenue, contractual deductions, net patient revenue, total costs and net operating income that would result for both Medicare and Medicaid.

Payor Class Number Pt. visits Payment /case Gross Revenue Contractual Deductions Net Pt Revenue Total Costs Net Operat. Income

Medicare 350 $2,050

Medicaid 200 $1,650

Expert Solution

							Amount in $
Payor Class	Number pt. visits	Payment/Case	Gross Revenue	Contractual deductions	Net Pt. Revenue	Total Costs	Net Operat. Income
Medicare	350	4500	1,575,000	717,500	857,500	770,000	87,500
Medicaid	200	4500	900,000	330,000	570,000	440,000	130,000
Total	550		2,475,000	1,047,500	1,427,500	1,210,000	217,500

Working

							Amount in $
Payor Class	Number pt. visits	Payment/Case	Gross Revenue	Contractual deductions	Net Pt. Revenue	Total Costs	Net Operat. Income
Medicare	350	4500	=350*4500	=350*2050	=1575000-717500	=350*2200	=857500-770000
Medicaid	200	4500	=200*4500	=200*1650	=900000-330000	=200*2200	=570000-440000
Total	550		2,475,000	1,047,500	1,427,500	1,210,000	217,500

ekkarill92 answered 1 year ago

Good Will General Hospital is introducing a new service that anticipates having 550 patient visits per...

Good Will General Hospital is introducing a new service that anticipates having 550 patient visits per year at an average cost per visit of $2,200 and average billed charges per visit of $4,500. Determine the gross revenue, contractual deductions, net patient revenue, total costs and net operating income that would result given the payer mix and terms in the table below. Please show all of your work to receive credit. This question is worth 10 points. Payor Class Number of...

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