16. Revenue budget: calculating gross revenues. Calculate ZMG Hospitalists Practice's January February, and March commercial payor gross revenues if the fee for an admission is $250 and the fee for a follow-up encounter is $100 (Exhibits 1.1e and 1.2a). EXHIBIT I.1e WEIGHTED ENCOUNTERS BY PAYOR AND TYPE Dec Total Sep Oct Nov Jun Jul Aug Feb Mar Apr May Jan Commercial 1.768 1,828 2,740 1,860 1,788 1,968 21,748 Admissions 1,892 1,908 1,772 1,692 1,736 1,776 1,760 2,652 Follow-up 2,838 2,860 2,656 2,540 2,606 2,664 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 4472 4,918 54,368 Medicare Admissions 2,944 2,748 2,964 2,756 2,636 2,704 2,760 2,844 4,264 2,736 2,896 2,784 3,060 33,832 Follow-up 4,416 4,124 4,448 4,132 3,952 4,054 4,142 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 Follow-up 420 392 424 392 376 388 396 408 392 412 396 436 4,832 7,250 630 590 636 590 564 580 592 610 586 620 596 656 Total 1,050 982 1,060 982 940 968 988 1,018 978 1,032 13,140 12,274 13,240 12,298 11,760 12,068 12,330 12,694 12,216 12,922 992 1,092 12,082 Total 12,424 13,658 151,024 Note: Computed by multiplying the projected encounters by type and payor in Exhibit I.1c by the RVUS (4 for admissions,, 2 for follow-up) in Exhibit I.1d, rounded to the nearest whole number. EXHIBIT 1.2a ILLUSTRATION OF HOW JANUARY'S NET PATIENT SERVICE REVENUES IN THE ZMG HOSPITALIST PRACTICE'S OPERATING BUDGET (EXHIBIT 10.10) WERE DEVELOPED A Gross Patient Weighted Encounters Fees Service Net Patient Discount Service Revenues Percentage Discount Revenues (Ax B) (C-E) Commercial Admissions Follow-up 1,892 $52.50 $52.50 $99,330 $148,995 2,838 4,730 $248,325 Total 30% $74,498 $173,828 Medicare Admissions Follow-up $52.50 $52.50 2,944 $154,560 $231,840 4,416 $386,400 7,360 40% $154,560 $231,840 Total Medicaid/Self-Pay 420 $52.50 $52.50 $22,050 $33,075 Admissions 630 Follow-up $38,588 $165 $16,538 70% $55,125 1,050 Total 1% Charity care $422,040 $267,810 $689,850 Total 13,140 Exhibit I.1d New information. The 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