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A hospital is introducing a new service that anticipates having 1000 patient visits per year at an average cost per visit of $2,200and average billed

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A hospital is introducing a new service that anticipates having 1000 patient visits per year at an average cost per visit of $2,200and average billed charges per visit of $4,500. Determine the amount of gross revenue, contractual deductions, net patient revenue, total costs, and net operating income that would result given the payer mix

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TABLE 9-2 Payer Class Number of Patients Payment per Case Medicare 400 $2,050 per case Medicaid 150 $1,650 per case Payers with a hospital contract 280 $3,000 per case Payers without a hospital contract 100 90% of gross (billed) charges Self-pay patients 50 5% of gross (billed) charges Charity care patients 20 $0 per case 1,000

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