Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:
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30 Medicare cases
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pay $2,000 per case
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30 Blue Cross Blue Shield cases
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pay $2,200 per case
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20 commercial cases
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pay 100 percent of charges
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10 Medicaid cases
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pay average cost
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8 self-pay cases
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pay 100 percent of charges
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2 charity cases
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pay nothing
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Average cost per case is expected to be $2,200, and the average charge per case is $2,500
Calculate Gross patient revenue and deductions from gross patient revenue1
You should have four categories:
Gross patient revenue
Deductions from gross patient revenue
Net patient revenue
Total expenses
Excess of revenues over expenses ($2,000)