Risk-Based Reimbursement

For your assignment, a primary care physician is often reimbursed by Health Maintenance Organizations (HMOs) via capitation, fee-for-service, relative value scale, or salary. Capitation is considered as a risk based compensation.

In an effort to understand the intricacies involved with physician reimbursement, particularly in an era of health care reform, identify and interview an expert in the field, such as:

Hospital Administrator

Managed Care Organization (MCO) executive

Health care Consultant

Legal Professional

Assumption: MCOs use risk-based reimbursement for primary care physicians.

Ask the following questions in the interview:

What kind of risk do the MCOs assess?

Does risk-based compensation limit the freedom of primary care physicians in any way in terms of patient care? Why or why not?

How does the capitation model of reimbursement work? Do physicians generally prefer one model over the other? Why or why not?

Why do HMOs prefer the prepaid, monthly premium?

Is pay-for-performance a better model than existing models of compensation? Are there limitations to it as well?

1.

United Snack Company sells 50-pound bags of peanuts to university dormitories for $38 a bag. The fixed costs of this operation are $390,000, while the variable costs of peanuts are $0.24 per pound.

a. What is the break-even point in bags?
  

b. Calculate the profit or loss (EBIT) on 6,000 bags and on 19,000 bags.
  

c. What is the degree of operating leverage at 18,000 bags and at 23,000 bags? (Round your answers to 2 decimal places.)
  

d. If United Snack Company has an annual interest expense of $24,000, calculate the degree of financial leverage at both 18,000 and 23,000 bags. (Round your answers to 2 decimal places.)

e. What is the degree of combined leverage at both a sales level of 18,000 bags and 23,000 bags? (Round your answers to 2 decimal places.)
  

Thomas forms a company, Thomson Ltd to manufacture motorised roller blades. To make the roller blades, Thomson Ltd needs to acquire specialised machinery from Fernster Ltd, which designs and manufactures the machinery. To manufacture the equipment, which has an estimated economic life of eight years, costs Fernster Ltd $200 000. Fernster Ltd sells the equipment to parties such as Thomson Ltd for $263 948. Thomson Ltd decides to lease the equipment from Fernster Ltd for a period of seven years, by way of a non-cancellable lease. The lease commences on 1 July 2019. The lease payments are made at the end of each year and amount to $55 000. The lease payments include reimbursement of Fernster Ltd’s costs for servicing the machinery at an amount of $5 000 per annum. There is an unguaranteed residual at the end of the lease term of $40 000, which represents expectations of what the lessee and lessor expect the machinery to be worth at the end of the lease term. The rate of interest implicit in the lease is 10 per cent.

REQUIRED:

1. Prove that the interest rate implicit in the lease is 10 per cent.

2. Provide the journal entries in the books of Thomson Ltd as at 1 July 2019 and 30 June 2020. Provide the journal entries in the books of Fernster Ltd as at 1 July 2019 and 30 June 2020.

At December 31, 2015, certain accounts included in the property, plant, and equipment section of Kevin Company’s balance sheet had the following balances:

Land          ........................................................................... $200,000

Buildings    ........................................................................... $900,000

Leasehold improvements..................................................... $600,000

Machinery and equipment.................................................. $700,000

During 2016, the following transactions occurred:

Land site number 621 was acquired for $1,000,000. Additionally, to acquire the land, Kevin paid a $60,000 commission to a real estate agent. Costs of $15,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $5,000.

A second tract of land (site number 622) with a building was acquired for $300,000. The closing statement indicated that the land value was $200,000 and the building value was $100,000. Shortly after acquisition, the building was demolished at a cost of $30,000. A new building was constructed for $150,000 plus the following costs:

Excavation fees...................................................................... $11,000

Architectural design fees......................................................... $8,000

Building permit fee................................................................... $1,000

The building was completed and occupied on September 29, 2016.

A third tract of land (site number 623) was acquired for $600,000 and was put on the market for resale.

Extensive work was done to a building occupied by Kevin under a lease agreement that expires on December 31, 2025. The total cost of the work was $125,000, which consisted of the following:

Painting of ceilings............................................................................. $10,000 (estimated useful life is 1 year)

Electrical work.................................................................................... $35,000 (estimated useful life is 10 years)

Construction of extension to current working area       ..................... $80,000 (estimated useful life is 30 years)                                                                                     $125,000

The lessor, Steinbeck Company, paid one-half of the costs incurred in connection with the extension to the current working area.

During December 2016, costs of $65,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2018, and is not expected to be renewed.

A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $75,000, freight costs were $2,000, unloading charges were $1,500, and royalty payments for 2016 were $13,000.

Required:

Prepare a detailed analysis of the changes in the balance sheet accounts – Land, Buildings, Leasehold Improvements, and Machinery and Equipment – for 2016. Disregard the related accumulated depreciation accounts.

Please help. Thank you. I included the templates.

Required:

A. Calculate the following ratios of DP World for the year 2018 &2019:

1. Current ratio
2. Quick ratio
3. Cash ratio
4. Debt-equity ratio
5. Asset turnover (Sales / Total Assets)

B. Evaluate liquidity, solvency and efficiency of the company.

if you can not do all part A and part B, just leave it for another tutoor

Lisa’s Darwin Home

Lisa sold her home in Darwin (contract date September 2019, settlement December 2019), receiving $1,220,000 at settlement. This is after legal fees ($12,000), advertising ($2,000) and real estate commissions ($25,000) were deducted. Records indicate that Lisa purchased the property in 2002 (contract date January, settlement March) for $653,000. Legal fees, commissions and advertising of $8,000 were also incurred. Lisa moved in within 6 months, selling her former residence during that time. Over the ownership period, Lisa rented the property for three years beginning December 2010, with $65,000 of $120,000 in non-capital costs claimed against rental income. The property was valued at $890,000 at the time it began being rented. Sculpture Lisa gave a sculpture, valued at $18,900, to her friend in June 2020.

The sculpture was purchased for $480 in December 2000 and repaired in March 2016 for $1,250.

Vase

When Lisa was playing with her cat in September 2019, the cat accidentally knocked over and broke a vase given to her by her grandmother in September 2018 (worth $6,100 at that time). The vase dated back to the Australian gold rush (circa 1850's) and, after undertaking some research, she discovered it was currently worth approximately $27,000. Lisa did not have insurance for the item. Cryptocurrency Lisa converted cryptocurrency into $27,200 Australian dollars in October 2019. To complete the transaction, she incurred $950 in transaction fees. Therefore, Lisa received $26,250 in cash. Lisa had acquired the cryptocurrency in September 2018 for $9,200 Australian dollars.

Shares Lisa sold

shares she held in a construction company in March 2020 for $182,000. She had purchased the shares for $37,200 in December 1986. Lisa has indicated that she has carried forward losses from prior years of $180,000 relating to a prior disposal of shares and land. We will have a meeting first thing Monday morning, so please complete your analysis by the end of Friday so I can review her circumstances over the weekend.

Required: You are required to calculate Lisa’s Net Capital Gain (loss) for the year ending 30 June 2020 based on the above information provided. In doing so, you must present an accurate and complete analysis.

Qa) Determine the taxable capital gain (loss) on the sale of the home. Briefly justify your answer/show all workings.

Qb) Determine the taxable capital gain (loss) on the sale of the Sculpture. Briefly justify your answer/show all workings

Qc) Determine the taxable capital gain (loss) on the sale of the Vase. Briefly justify your answer/show all workings

Qd) Determine the taxable capital gain (loss) on the sale of the Cryptocurrency. Briefly justify your answer/show all workings.

Qe) Determine the capital gain on the sale of the Shares. Briefly justify your answer/show all workings A.6 Determine the Net Capital Gain and/or Loss for Lisa. Briefly justify your answer/show all workings.

. "Building a Critical Skill: Thinking Critically" "some MBA programs now include courses in law, poetry, entrepreneurship, and biotechnology." The following video presentations take this idea even further, suggesting that all jobs or careers will require a higher set of skills than in the past. https://www.youtube.com/watch?v=NS2PqTTxFFc&feature=youtu.be

Can courses in law, poetry, biotechnology create a better leader?

2. Which skills listed in the video do you think are most important? Are you acquiring these skills in your current educational journey? Where?

(350 minimum words)

You need a new car and the dealer has offered you a price of $20,000​, with the following payment​ options: (a) pay cash and receive a $2,000 ​rebate, or​ (b) pay a $5,000 down payment and finance the rest with a 0% APR loan over 30 months. But having just quit your job and started an MBA​ program, you are in debt and you expect to be in debt for at least the next 2​ ½ years. You plan to use credit cards to pay your​ expenses; luckily you have one with a low​ (fixed) rate of 13.67% APR. Which payment option is best for​ you?

Trudy Pierre is the CFO of Vista Intl, a young financial software platform firm. Ms. Pierre is considering several projects in newly opening markets in Khazaksthan. She believes that her firm should take advantage of the current low interest rates. Thus, she would like to increase the debt equity ratio of the firm but is concerned about the consequences of increasing leverage. Although she studied finance in her MBA program, she does not remember much about capitol structure theory. Knowing that you have recently taken a class, what advice would you give her?

An incoming MBA student took placement exams in economics and mathematics. In​ economics, she scored 80 and in math 86. The overall results on the economics exam had a mean of 73 and a standard deviation of 10​, while the mean math score was 67​, with a standard deviation of 12. On which exam did she do better compared with the other​ students? Since she scored (nothing) standard deviations ▼ ( below or above) the mean in economics and (nothing) standard deviations ▼ (below or above) the mean in​ mathematics, she did better on the ▼ (economics or mathematics) exam. ​(Round to two decimal places as​ needed.)