Determine the amount of net operating income

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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)***************

Reference no: EM13978734

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