ADMISSION COLUMN AND VC PER ADMISSION COLUMN********

THE 0'S WILL CALCULATE ON THEIR OWN.

7.4 Assume that Valley Forge Hospital has only the following three payer groups:

Payer Number of Admissions Average Revenue per Admission Variable Cost per Admission

Penn Care 1,000 $5,000 $3,000

Medicare 4,000 $4,500 $4,000

Commercial 8,000 $7,000 $2,500

The hospitals fixed costs are $38 million.

a.		Avg revenue	Revenue	VC per	Total
Payer	# admissions	per admis	by payer	admission	VC	CM
PennCare		$5,000	$0		$0	$0
Medicare		$4,500	$0		$0	$0
Commercial		$7,000	$0		$0	$0
	-		$0		$0	$0
		Revenue	$0
		VC	$0
		CM	$0
		FC	$38,000,000
		Net income	($38,000,000)
b.		Avg revenue	Revenue	VC per	Total
Payer	# admissions	per admis	by payer	admission	VC	CM
PennCare		$5,000	$0		$0	$0
Medicare		$4,500	$0		$0	$0
Commercial		$7,000	$0		$0	$0
Commercial, Capitated			$0		$0	$0
	-		$0		$0	$0
		Revenue	$0
		VC	$0
		CM	$0
		FC	$38,000,000
		Net income	($38,000,000)
	Lives	50,000
	Months	12
	Revenue	$0
	PMPM	$0.00