Reference no: EM131332356

Memorial Hospital is trying to calculate its expected payments from a proposed fee structure with a local health plan. The health plan projects its hospital budget at 465 patient days per 1,000 members, with a payment rate of $1,000 per patient day. The covered population is 25,000 members, which produces a hospital budget of $11,625,000 [(465/1,000)   ×   25,000   ×   $1,000)]. The health plan proposes that a 10% withhold be put into effect, which translates to an actual per diem payment of $900. The risk pool would be shared equally by the doctors (one-half) and the hospital (one-half). Any negative balance in the risk pool would be assumed by the health plan. Calculate the amount of payment to Memorial Hospital under two assumptions: 550 patient days per 1,000 and 430 patient days per 1,000.

Question:

If I Change the assumptions and calculate the amount of payment to Memorial Hospital under the following two scenarios:

500 patient days per 1,000

400 patient days per 1,000