Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Chemistry proFinkler Residential Treatment Facility anticipates that it would have 25,000 patient-days next year. This is substantially below its capacity of 35,000 patient-days per year. Facility has variable costs of $75 per patient-day. Its fixed costs are $1,500,000 per year.

Health hospital has been pushed by its physician to add the open heart surgery unit. This has always been resisted on grounds that there was not adequate demand to make unit financially reasonable. Under DRG system, Healthy can expect to receive average reimbursement of $56000 per open heart surgery for each of the anticipated 100 open heart surgeries per year. Incremental costs will be expected to $60000 per case so a loss will be incurred.

Though, prestige associated with offering open heart surgery will attract new affiliations. It is expected that 10 extra general practice physicians will join staff and each of these 10 physicians will generate 20 patients per year, spread across wide variety of DRGs. Struggling has excess capacity and will welcome extra patients.

It is expected that average DRG reimbursement for these new patients will be $28000. The average cost is expected to be $27800. The average marginal cost is expected to be $26400. Should health add open heart surgery as a loss leader.

problem1) Compute the average cost per patient-day for Finkler Residential Treatment Facility at the volume of 25,000 patient-days and at 30,000patient-days.

problem2) Suppose that the HMO offers to generate 5,000 patient-days per year. It presently sends no patients to Finkler Residential Treatment Facility. It is willing to pay the maximum flat amount of $90 per patient-day. Assuming that its case mix is similar to the present 25,000 patient-days, must Finkler accept its business?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92654

Have any Question? 


Related Questions in Accounting Basics

If a nurse deposits 12000 today in a real estate investment

If a nurse deposits $12,000 today in a real estate investment trust (REIT) and the interest is compounded annually at 7% percent, what will be the value of this investment: a.) Five years from now? b.) Ten years from now ...

Section i multiple choicemark one box only to indicate the

Section I: Multiple Choice Mark one box only to indicate the answer you consider correct for each question 1. Which of the following is the goal of the U.S. health care system? a. Access b. Cost c. Quality d. All of the ...

Write a 600-800 word memo to your accounting committee on

Write a 600-800 word memo to your accounting committee on fraud detection discussing the 6 steps of the Proactive Method of Fraud Detection found in figure 6.1 of Chapter 6. Include methods to gather information about a ...

Asignment1 the function is one-to-one on the interval

Assignment (1) The function is one-to-one on the interval . Find a formula for the inverse function on that domain. Sketch the graphs of and for on the same set of x,y-axes. (2) Show is one-to-one on the interval . (Just ...

1 several years ago courtney borrowed 100000 from the

1) Several years ago, Courtney borrowed $100,000 from the Friendly Local Bank and used it to buy an apartment building. Courtney has not been able to rent any of the apartments in the building and has not made any princi ...

Accounting questionfollowing the completion of the

Accounting Question: Following the completion of the investigation of a potential fraud case, you are informed by your manager that the case will be brought to trial. As part of the litigation process you will be asked t ...

Intermediate accounting assignment1 the nail company paid

Intermediate Accounting Assignment 1) The Nail Company paid $1,200,000 to purchase 35% of the outstanding stock of the Toe Corporation. Toe Corporation reports $450,000 of net income and paid a cash dividend of $150,000. ...

1 if a bartender can somehow accumulate extra liquor and

1. If a bartender can somehow accumulate extra liquor, and does not register the extra drinks, which of these activities could be spotted by the analytical methods we studied? A. The bartender steals the extra liquor B. ...

Task -question 1 - saasu task 1you are working as an

Task - Question 1 - Saasu Task 1 You are working as an accountant in a regional accounting firm and have been approached by the owner of a start-up retail business. They have chosen Saasu as their accounting system and h ...

Expl principles of accountingdepartment Expl Principles of Accounting Department

Expl Principles of Accounting Department Responsibility • Why should responsibility for related transactions be divided among different departments or individuals? Do you agree the transactions should be divided? Why or ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen