1. Suppose that a health care organization had revenues of $300,000 for March and that the payer mix is as follows: Payer Medicare Percent of patients Payment lag 40 3 months Medicaid 20 3 months Blue Cross 15 2 months Other insurer 15 1 month Self-pay 10 2 months How much cash will be received in May from March revenues? Will that be all the revenue received that month? 2. Assume that a home health agency bills Medicare $2.5 million per year. Ordinarily it issues its bills once at the end of each month. It mails them to the Medicare payer using first-class mail, which takes an average of 3 days. It then takes Medicare another 6 days to enter the information from the paper bills into its computer system. The agency could send the bills electronically every day, and they would enter the payer's computer system directly and immediately. If the interest rate is 10%, how much is the agency losing by using its current system? 3. A health care organization normally makes payments 45 days after receiving an invoice. It would have to borrow money at 12% to make an early payment. If it is offered terms of 1.5/10 N/30, should it take the discount on a $50,000 invoice? 1. A hospice wishes to buy equipment. It has $40,000 of available financing from equity and wishes to borrow $60,000. a. If it borrows the $60,000 from a bank on a note at 11% for 5 years, what are the payments each year? b. If it takes a 5-year mortgage on the equipment from a bank at 10%, the annual payments will be $15,827.85. How much interest will be paid each year? How much principal will be repaid each year?