Define fee for service discounted fee for service charity

Question

Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:

(1)

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

(1)

1.  Calculate Gross patient revenue and deductions from gross patient revenue.
2.  Define revenue
3.  Define fee for service, discounted fee for service, charity services, and payment before service is delivered.  ( all written assignments must be in APA format)

(3)

Time Value of Money  (TVM)

Calculate the Future Value of $1 in each of these 3 projects

TVM Exercise

Project                            Number of periods                            Interest rate

Pop                                              5                                                  11%

Whistle                                         4                                                    7%

Loop                                             3                                                    8%

(4)

Calculate the Present Value of each of the Projects below:

Project                            End of period                             Discount rate                          Single cash Flow

Pop                                              5                                                  11%                                     $10,000

Whistle                                        15                                                   7%                                         7,500

Loop                                            25                                                   8%                                         5,000

Income Statement Preparation:

(5) Prepare an Income Statement, in proper format, for 2015 for Johnson Medical Supplies (JMS) from the following information:

• Salaries                          $70,000
• Insurance                        $700
• Utilities                           $3,500
• Gas/Auto                         $5,750
• Office Supplies                 $7,250
• Revenue                         $175,000
• Rent                               $12,000
• Maintenance                   $50,000 

(6) Calculate, define, and discuss the operating expenses, operating profit, and profit percentage.

Did JMS have a good year? Why/Why not?