Reference no: EM133293731

Case: A large regional hospital has a vacant wing that has 40 beds. This unit has been closed because the hospital was effective in establishing a hospitalist program that helped reduce length of stay and increased timely discharges. Also, the hospital built a newer patient care tower that oadmissions and daily visits. The LTACH will contract with a local hospitalist group for daily coverage of at least 4 hours per day during the first six months. Average length of stay is projected to be 26 days per admission (covered by Medicare Part A and insurances). The hospital is planning a contract with the group and wants to present a pro-forma. The group wants a monthly call coverage stipend of $3000 per month plus the ability to bill for professional services.

The hospital agrees that during start up, they will pay a subsidy between the expense of the hourly rate versus what the physician group actually collected. Coverage would require 120 hours of physician time per month (4 hours/day during start up; hours expand based on census) or approximately $150/hour. Complete the proforma and calculate the expense and revenue. Revenue average $100/encounter. You have to add the estimated revenue (take Average daily census and multiplying this by estimated revenue of $100 per physician encounter).

Then complete the first yellow line in the spreadsheet. The budget shows a projected growth. Due to nature of the admissions and discharges, it is assumed that the ADC is 35 at month 12 for planning purposes. It is unlikely to have a full census 100 percent of the time. penned in the past year. The hospital received a Certificate of Need for a 40 bed, separately licensed Long Term Acute Care Hospital (LTACH). This sub-acute unit must have 24/7 physician coverage to handle