Question

St. Peter’s acute care center had net income of $1,600,000 and revenue totaling $34,600,000. Its administrative expense was $7,500,000 and its interest expense was $760,000. Holy Cross acute care center had net income of $600,000 and revenue totaling $12,300,000. Its administrative expense was $1,900,000 and its interest expense was $135,300?

Which of the following is TRUE?

		St. Peter's has a lower common-sized interest expense than Holy Cross.
		St. Peter's has a common-sized net income of 4.62% and a common-sized administrative expense of 5.8%.
		Holy Cross's common-sized administrative expense and interest expense are 15.45% and 1.1%, respectively .
		The two acute care centers' financial numbers are not comparable since St. Peter's is so much bigger than Holy Cross.

UTSW Hospitals reported the following account balances (in thousands) for their budgeting cycle:

Administrative expenses         $ 60,000                                  

Net patient revenue                  630,000

Marketing expenses                   44,000

Salaries & Benefits expenses  475,000

How much is the Operating Margin % budgeted for UTSW Hospital ?

		8.1%
		9.5%
		5.9%
		3.2%

Rivercrest Hospitals reported the following account balances (in thousands) at June 2018:

Administrative expenses         $ 66,000

Accounts receivable    110,000

Cash                                              30,000

Patient revenue                         590,000

Selling expenses                         44,000

Supplies Inventory                  60,000

Cost of goods sold                    445,000

Accounts Payable                       80,000

Taxes Payable-Current              20,000

Based only on the above information, what is the Working Capital for Rivercrest Hospitals?

		$170,000
		$110,000
		$210,000
		$100,000
		$75,000

What is the most likely step in the provider revenue cycle management process that would involve collecting cash payments from patients for their co-pay responsibility?

		Recovery Room
		Scheduling
		Coding
		Registration

plz and asap....

Answer 1

1) True: Holy Cross's common-sized administrative expense and interest expense are 15.45% and 1.1%, respectively

Because:

• Holy Cross administrative expense % = administrative expenses % (administrative expenses/revenue)
• = 1,900,000 / 12,300,000 = 15.45%
• Holy Cross interest expense % = interest expenses % (administrative expenses/revenue)
• = 135,300 / 12,300,000
• = 1.1%

2) 8.1%

Net patient revenue	$ 630,000.00
Less: Marketing expenses	$    44,000.00
Less: Salaries & Benefits expenses	$ 475,000.00
Less: Administrative expenses	$    60,000.00
Operating income	$    51,000.00
Operating Margin ) operating income / revenue)	8.10%

3) $100,000

	Amount
Current Assets = Accounts receivables + Cash + Supplies Inventory	$        200,000
Current Liabilities = Accounts Payable + Taxes Payable-Current	$        100,000
Working Capital ( Current Assets - Current Liabilities)	$        100,000

4) Coding is the most likely step in the provider revenue cycle management process that would involve collecting cash payments from patients for their co-pay responsibility