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Can anyone help me with the calculation of Gross patient service revenue? Can you please give me step by step explanation of that please I

image text in transcribedCan anyone help me with the calculation of Gross patient service revenue?

Can you please give me step by step explanation of that please I will be grateful.

Thank you

1- Recreate from a blank spreadsheet a 3 year Income Statement projection (monthly projections for year 1 and annual for years 2 and 3)
2- Use the assumptions below to create the projections for the physician practice
3- Make sure to clearly show any additional assumptions you make
4- Your model
Weve recruited an orthopedic surgeon to join the St. Annes market. The physician, a joint surgeon, will start March 1st, Year 1
The joint surgeon will operate 3 days a week (4 surgeries per day) and will be in the office 2 days a week (sees 30 patients per day)
Use the chart below to calculate gross patient service revenue (GPSR); bad debt is 3% of GPSR and contractual allowance is 55% of GPSR
1- Recreate from a blank spreadsheet a 3 year Income Statement projection (monthly projections for year 1 and annual for years 2 and 3) 2- Use the assumptions below to create the projections for the physician practice 3- Make sure to clearly show any additional assumptions you make . We've recruited an orthopedic surgeon to join the St. Anne's market. The physician, a joint surgeon, will start March 1st, Year 1 The joint surgeon will operate 3 days a week (4 surgeries per day) and will be in the office 2 days a week (sees 30 patients per day) Use the chart below to calculate gross patient service revenue (GPSR); bad debt is 3% of GPSR and contractual allowance is 55% of GPSR GPSR/WRVU Surgical Cases wRVU/patient 8.0 1.5 $160 $80 Office Visits . Total volume grows 10% in year 2 and another 10% in year 3 The physician's salary will be $375K in year 1 and is flat for 3 years. MD fringe benefits are 15 % of salary We will need to hire a medical secretary ($15/hour) and a medical assistant ($20/hr) to support the physician in his practice Staff salary growth is 2% every year and fringe benefits are 25% Rent of $70K and utilities of $10K per year are split with another physician. There is rent escalation of 2% in year 2 and another 2% in year 3 See below for break-out of other expenses YOY % Change Billing Fees 6.5% of Net 0% Revenue Malpractice $30k/year 8% Medical Supplies 0% $2/office WRVUS $1.5/office 0% Purchased Services WRVUS Other Expenses 0% $.50/office WRVUS 7% of total Overhead 0% expenses One time expenses in year 1 are $10K for marketing, a $20K sign-on bonus and $5K for software licenses Upfront capital costs will be $500K to fix the space and buy equipment 4-If the hospital margin is $9,000 on average for a joint surgery, should we or shouldn't we hire this physician

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