3. The hospital admits 500 patients per month (Q) who stay an average of five (4.5) days per admission, charges $12,000 per admission (P) and incurs $7,000 in costs (ATC) per patient. First, assume all patients are reimbursed under the same reimbursement method, complete the table and calculate net income for the hospital under each reimbursement method. Second, in the composite column calculate the hospitals expected net income given the payer mix specified below (% of admissions). Assume the per diem payer is offering a contract for the upcoming fiscal year that will pay $1,400 per day, should the contract be accepted? Explain your answer.

80% of Charges, 35% of admissions Cost, 5% of admissions Per Diem, $1,600 per day, 10% of admissions Per Case, use DRG payment calculated in #2, 45% of admissions PMPM, $200 capitation for 15,000 covered lives, 5% of admissions

Charge Cost Per Diem Per Case Capitation Composite

Total Revenue $ _______ _______ _______ _______ _______ _______

- Contr. Disc. _______ _______ _______ _______ _______ _______

Net Revenue _______ _______ _______ _______ _______ _______

- Expenses_______ _______ _______ _______ _______ _______

Arial Narrow 12 Emphasis Heading 1LTNormal11DS Select- Paste pboard Maximum one year investment la ge ie nt 3. The hospital admits 500 patients per month (Q) who stay an average of five (4.5) days per admission charges $12.000per admission (P) and inurs $7,000 in costs (ATC) per patient. Frst, assume all patients are reimbursed under the same reimbursement method, complete the table and calculate net income for the hospital under each reimbursement method Second, in the composite colurnn calculate the hospital's expected net r come gren the payer mx specified below % of admissions) Assume the per diem payer is offening a contract for the upcoming fiscal year that will pay $1,400 per day, should the contract be accepted? Explain your answer 80% of Charges, 35% of admissions Cost 5% of admissions Per Diem, $ 1,600 per day, 1 0% of admissions Per Case, use DRG payment calculated in #2, 45% of admissions PMPM, $200 capitation for 15,000 covered lives, 5% of admissions Charge Cost Per Diem Per Case Capitation Camposie Total Revenue $ -Contr. Disc. Net Revenue Expenses Net Income $ of 1 384 words + 100% Page 1 of 2 372 words