Determine the amount of net operating income that would


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

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.

Calculate gross patient revenue, deductions from gross patient revenue, net patient revenue, total expenses, and excess of revenues over expenses above.

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Financial Management: Determine the amount of net operating income that would
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