1. Reimbursement Methods A. A hospital admits 525 patients per month who stay an average of five (5.0) days per admission. This hospital charges $12,000 per admission and incurs $7,100 in costs ($4,000 fixed and $3,100 variable) per patient. Assume all patients are reimbursed under the same reimbursement method, complete the table and calculate net income for the hospital under each reimbursement method. A. 80% of Charges: B. Cost: C. $1,550 per diem: D. $7,250 per case: E. $195 capitation (per member per month): assume the number of covered lives is 15,000. Charge Cost Per Diem Per Capitation Case Total Revenue Less: Contractual discounts Net Revenue Less: Expenses Total Revenue $ $ Less: Contractual discounts Net Revenue Less: Expenses Net Income B. Calculate the expected net income for a hospital with the following patient mix: 80% of Charges: 95 admissions per month (18.1%) Cost: 26 admissions per month (5.0%) $1,550 per diem: 53 admissions per month (10.1%) $7,250 per case: 262 admissions per month (49.9%) $190 capitation (per member per month): 79 admissions per month (15.0%) assume the number of covered lives is 2.250 No pay: 10 admissions per month (1.9%)