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Compare the benefits (as described in table 11.4) being received by a representative hospital in the community with the real amounts of the cost of uncompensated care being given by the organization....

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Compare the benefits (as described in table 11.4) being received by a representative hospital in the community with the real amounts of the cost of uncompensated care being given by the organization.

Pick one hospital area that is generally profitable (imaging, surgical services, cardiology), and develop a pro forma for a service expansion of your choice. Remember the importance of volumes in the development of the pro forma.

Answered 71 days After May 23, 2022

Solution

Dr Shweta answered on Aug 03 2022
85 Votes
pro forma for a service expansion for profitable hospital area
    
    All the amounts used here are in US Dolla
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Sr. No.
    
    
     Year 1
     Year 2
     Year 3
    
    Increase
    
    
    1-
    Volume of the case
    
     50.00
     53.00
     56.00
    
    5%
    
    
    2-
    Charges of patients
    
     15,000.00
     15,750.00
     16,538.00
    
    5%
    
    
    3-
    Gross Revenue collected
    
    
    Payer %
    
    Payer %
    
    Payer %
    
    
    
    
    
    
    Medicare unit
     2,25,000.00
    30%
     2,50,425.00
    30%
     2,77,838.00
    30%
    
    
    
    
    
    
    Medicaid unit
     1,50,000.00
    20%
     1,66,950.00
    20%
     1,85,226.00
    20%
    
    
    
    
    
    
    Managed Care unit
     1,50,000.00
    20%
     1,66,950.00
    20%
     1,85,226.00
    20%
    
    
    
    
    
    
    Commercial part
     1,50,000.00
    20%
     1,66,950.00
    20%
     1,85,226.00
    20%
    
    
    
    
    
    
    Self-Pay part
     75,000.00
    10%
     83,475.00
    10%
     92,613.00
    10%
    
    
    
    
    
    
    Worker's Component
     -
    0%
     -
    0%
     -
    0%
    
    
    
    
    
    
    Other units
     -
    0%
     -
    0%
     -
    0%
    
    
    
    
    
    Total Gross Revenue
    
     7,50,000.00
    100%
     8,34,750.00
    100%
     9,26,129.00
    100%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4-
    Net Revenue
    
    
    Real %
    Real %
    
    Real %
    
    
    
    
    
    
    
    Medicare unit
     1,35,000.00
    60%
     1,45,247.00
    58%
     1,58,368.00
    57%
    
    
    
    
    
    
    Medicaid
     37,500.00
    25%
     38,399.00
    23%
     42,602.00...
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