1. Prepare a revenue budget for Saunders Home Health Agency. Blue Cross members can only be charged $60 for a nurse visit by the agency, even though the agency normally charges $75. Aetna Insurance Company has agreed to pay 80% of the agencys normal charge. Medicaid regulations call for it to pay the cost of care, and that the cost of each visit is $45. Suppose further that Medicare has a fee schedule that calls for it to pay $50 for this type of patient. The agency gives a $50 discount to poor uninsured patients, charging them only $25. Saunders expects 40 Blue Cross, 15 Aetna, 20 Medicaid, 50 Medicare, 25 uninsured and 20 self-pay visits. Of the self-pay patients, three-quarters pay their full charge, but one-quarter never pay any of their bill. Prepare a revenue budget for Saunders Home Health Agency.

Will Saunders have a profit or loss?