15. Revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practices January, February, and March Medicare gross revenues if the fee for an admission is $200 and the fee for a follow-up encounter is $100 (Exhibits I.1e and I.2a).

Exhibit 1.1e Weighted Encounters by payor and type

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Total
Commercial
Admissions	1,892	1,768	1,908	1,772	1,692	1,736	1,776	1,828	1,760	1,860	1,788	1,968	21,748
Follow-up	2,838	2,652	2,860	2,656	2,540	2,606	2,664	2,740	2,638	2,792	2,684	2,950	32,620
Total	4,730	4,420	4,768	4,428	4,232	4,342	4,440	4,568	4,398	4,652	4,472	4,918	54,368
Medicare
Admissions	2,944	2,748	2,964	2776	2636	2704	2760	2844	2736	2896	2784	3060	33,832
Follow-up	4,416	4,124	4,448	4,132	3,952	4,054	4,142	4,264	4,104	4,342	4,176	4,588	50,742
Total	7,360	6,872	7,412	6,888	6,588	6,758	6,902	7,108	6,840	7,238	6,960	7,648	84,574
Medicaid/Self Pay
Admissions	420	392	424	392	376	388	396	408	392	412	396	436	4,832
Follow-up	630	590	636	590	564	580	592	610	586	620	596	656	7,250
Total	1,050	982	1,060	982	940	968	988	1,018	978	1,032	992	1,092	12,082
Total	13,140	12,274	13,240	12,298	11,760	12,068	12,330	12,694	12,216	12,922	12,424	13,658	151,024

Note: Computed by multiplying the projected encounters by type and payor in Exhibit 1.1c by the RVUs (4 for admissions, 2 for follow-up) in exhibit 1.1d, rounded to the nearest whole number

EXHIBIT I.2a ILLUSTRATION OF HOW JANUARYS NET PATIENT SERVICE REVENUES IN THE ZMG HOSPITALIST PRACTICES OPERATING BUDGET (EXHIBIT 10.10) WERE DEVELOPED

	A Weighted Encountersa	B Feesb	C Gross Patient Service Revenues (A x B)	D Discount Percentageb	E Discountc	F Net Patient Service Revenues (C E)
Commercial
Admissions	1,892	$52.50	$99,330
Follow-up	2,838	$52.50	$148,995
Total	4,730		$248,325	30%	$74,498	$173,828
Medicare
Admissions	2,944	$52.50	$154,600
Follow-up	4,416	$52.50	$231,840
Total	7,360		$386,400	40%	$154,560	$231,840
Medicaid/Self Pay
Admissions	420	$52.50	$22,050
Follow-up	630	$52.50	$33,075
Total	1,050		$55,125	70%	$38,588	$16,538
Charity Care				1%	$165
Total	13,140		$689,850		$267,810	$422,040

^aExhibit I.1d.

^bNew information.

^cThe discount is computed by multiplying the total of gross charges for each payor by the discount percentage. In the case of Medicaid/Self-Pay, 1 percent of Medicaid/Self-Pay net revenues is considered charity care; therefore, this additional discount is computed by multiplying Medicaid/Self-Pay net patient service revenues by 1 percent.

Note: Computed by multiplying the projected encounters by type and payor in Exhibit 1.1c by the RVUs (4 for admissions, 2 for follow-up) in exhibit 1.1d, rounded to the nearest whole number