Write a Case study on Some additional explanation for Question Number 1 on the Case Study. For question Number 1 On Table III-A you will see Volumes… On Table III-B you will see Payer percentages…Medicare ＝ 25%, etc On Table III-D you will see Average Charges per Day… So you need to start a schedule and build the Revenue: Acute Care Days by Service ＝ Medical/Surgical ＝ 2843 Average Charges/Day ＝ Medical/Surgical ＝ $10000 Gross Medical/Surgical Revenue ＝ $28,430,000 Times Medicare Gross ＝ 25% times $28,430,000 ＝ $7,107,500 Read carefully the comments from Ms. Controller…She indicates that they have opted for cost based reimbursement from Medicare and Medicaid. so they will only be reimbursed their cost for these two payors. Once you complete the Cost portion of your analysis you should compute that Medicare costs are $10, 143,137…The Total revenue they will receive from Medicare is roughly $10, 143,137…The difference is the Contractual Deduction or the Explicit Price Concession… You will develop the same type of calculation for each payor and each service. You will need to read carefully the interviews for each of the executives and follow each of the schedules that are provided. The Income Statement and Balance Sheet will require the most detail of explanations. For question Number 1 On Table III-A you will see Volumes… On Table III-B you will see Payer percentages…Medicare ＝ 25%, etc On Table III-D you will see Average Charges per Day… So you need to start a schedule and build the Revenue: Acute Care Days by Service ＝ Medical/Surgical ＝ 2843 Average Charges/Day ＝ Medical/Surgical ＝ $10000 Gross Medical/Surgical Revenue ＝ $28,430,000 Times Medicare Gross ＝ 25% times $28,430,000 ＝ $7,107,500 Read carefully the comments from Ms. Controller…She indicates that they have opted for cost based reimbursement from Medicare and Medicaid. so they will only be reimbursed their cost for these two payors. Once you complete the Cost portion of your analysis you should compute that Medicare costs are $10, 143,137…The Total revenue they will receive from Medicare is roughly $10, 143,137…The difference is the Contractual Deduction or the Explicit Price Concession… You will develop the same type of calculation for each payor and each service. You will need to read carefully the interviews for each of the executives and follow each of the schedules that are provided. The Income Statement and Balance Sheet will require the most detail of explanations.
