What is the difference between the two a-r rates above

Assignment Help Operation Management

Reference no: EM131871744

Your healthcare facility has the following payer mix:

40% commercial insurances

25% Medicare insurance

15% Medicaid insurance

15% liability insurance

5% all others including self-pay

Write a 3-4 page report that addresses the following requirements:

Assume that for the time in question you have 2000 cases in the proportions above. (What are the proportions of the 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?)

What are the expected rates of reimbursement for this time frame for each payer? What is your expected A/R?

What rate should you charge for these services (assuming one charge rate for all payers)? (This gives you your total A/R.) Calculate the total charges for all cases based on this rate.

What is the difference between the two A/R rates above? Can you collect it from the patient? What happens to the difference?

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

Materials/supplies (gowns, drapes, bedsheets)

Wages (nurses, technicians)

Utility, building, usage exp (lights, heat, technology)

Medications

Licensing of facility

Per diem staff

Insurances (malpractice, business etc.)

Calculate the contribution margin for one case (in $) with the following costs for this period, per case:

Materials/supplies: $2270

Wages: $2000

Utility, building, usage exp: $1125

Insurances (malpractice, business etc.): $175

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

Suppose you want to make $150,000 profit between this period and next period to fund an expansion to the NICU, how many cases would you have to see? At what payer mix would this be optimal?

Reference no: EM131871744

Questions Cloud

Analyze the major pros and cons of preparing company budgets : Analyze the major pros and cons of preparing company budgets. Analyze the most common responsibility reporting systems

Find the corresponding put value through put-call parity : Find the corresponding put value through put-call parity.

Estimate for the population proportion of social media : Construct a 90% confidence interval estimate for the population proportion of social media users that have purchased an item promoted by a celebrity on a social

How is hester prynne a uniquely american heroine : Find a specific passage in Mary Rowlandsons A Narrative of the Captivity and Restoration that exemplifies her attitude toward her captives and her religious

What is the difference between the two a-r rates above : What is the difference between the two A/R rates above? Can you collect it from the patient? What happens to the difference?

Null hypothesis that male and female turtles : Using the following data, tested the null hypothesis that male and female turtles have the same mean serum cholesterol concentrations, measured in mg/100 ml.

Value of unlevered firm : What is the difference between the value of an unlevered firm and that of an otherwise identical according to (A) The M&M theory without taxes?

Evaluate the implications of operations management strategy : Evaluate the implications of operations management strategies on the successful management and leadership of an enterprise.

Compare the widths of the confidence intervals : Interpret the results and compare the widths of the confidence intervals. If? convenient, use technology to construct the confidence intervals.

User Account

All Pages