+1-415-315-9853

info@mywordsolution.com

## Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

Your facility has the following payer mix:

40% commercial insurances
25% Medicare insurance
15% Medicaid insurance
15% liability insurance
5% all others including self-pay

Suppose that for the time in problem you have 2000 cases in proportions. (What are the proportions of total cases for each payer?)

The average Medicare rate for each case is \$6200- use this as the baseline. Commercial insurances average 110% of Medicare, Medicaid averages 65% of Medicare, Liability insurers average 200% of Medicare and the others average 100% of Medicare rates. (What are the individual reimbursement rates for all 5 payers?)

1. What are the anticipated rates of recompense for this time frame for each payer? What is your expected A/R?

2. What rate must you charge for such services (supposing one charge rate for all payers)? (This gives you your total A/R.) Compute the total charges for all cases based on this rate.

3. What is the differentiation between the two A/R rates above? Can you collect it from the patient? What takes place to the difference?

4. Which of these costs are fixed? Which are variable? Direct or indirect?

- Materials/supplies (gowns, drapes, bed sheets)
- Wages (nurses, technicians)
- Utility, building, usage exp (lights, heat, technology)
- Medications
- Licensing of facility
- Per Diem staff

5. Evaluate the contribution margin for one case (in \$) with the subsequent costs for this period, per case: a. materials/supplies: \$2270 b. Wages: \$2000 c. Building, Utility, usage exp: \$1125 d. Insurances (malpractice, business etc.): \$175

6. Using the above information, determine which is variable and which cost is fixed. Then compute the breakeven volume of cases in units for this period.

7. Assume you desire to make \$150,000 profit between this period and subsequently period to fund an expansion to NICU, how many cases would you have to see? At what payer mix would this be optimal?

Basic Finance, Finance

• Category:- Basic Finance
• Reference No.:- M91596

Have any Question?

## Related Questions in Basic Finance

### Which financial variable must be multiplied by the return

Which financial variable must be multiplied by the return on assets ratio in order to calculate the return on stockholders' equity ratio? Which financial ratio assesses management performance by measuring the profitabili ...

### Principles of financecorporations often use different costs

Principles of Finance Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying ...

### If the binomial model produces a call option price that is

If the binomial model produces a call option price that is higher than the price at which the option is trading in the market, what strategy is suggested? Discuss how a binomial model accommodates the possibility of earl ...

### 1 what is the source of most hazardous materials incidents2

1. What is the source of most hazardous materials incidents? 2. List and describe four categories of weapons of mass destruction. 3. What six steps are common to most risk assessment methodologies? 4. Name several of the ...

### Phillips rock and mud is trying to determine the maximum

Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows: Assets Cash \$ 386,000 Accounts receivable 836,000 Fixed assets   1,048,000   ...

### 1 what is the scientific method and how does it guide

1. What is the scientific method, and how does it guide research? 2. Discuss the basic characteristics of scientific inquiry (empiricism, objectivity, and accumulation) and their value to science. 3. In what ways is scie ...

### The bolts will be lubricated with moly paste for better

The bolts will be lubricated with moly paste, for better control of preload, and will be tightened with a torque wrench. What torque will you specify? What range of preload would you expect to encounter when that torque ...

### Why might households and firms in a foreign country prefer

Why might households and firms in a foreign country prefer to use U.S. dollars rather than their own country's currency in making transactions? What advantages or disadvantages do foreign governments experience because o ...

### A random sample of the birth weights of 186 babies has a

A random sample of the birth weights of 186 babies has a mean of 3103 g and a standard deviation of 691 g. Construct a 98% confidence interval estimate of the mean birth weight for all such babies. What is the confidence ...

### 1 a successive independent survey design and a longitudinal

1. A successive independent survey design and a longitudinal survey design both examine changes in responses over time. How do they differ in their approach? 2. Distinguish between demographic and epidemiological researc ...

• 13,132 Experts

## 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.

### WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

### 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