Reference no: EM13990432

Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:

30 Medicare cases		pay $2,000 per case
30 Blue Cross Blue Shield cases		pay $2,200 per case
20 commercial cases		pay 100 percent of charges
10 Medicaid cases		pay average cost
8 self-pay cases		pay 100 percent of charges
2 charity cases		pay nothing

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)