Can someone walk me through how to solve Part 1 steps 1, 2 and 3 of the Denison Hospital Case Study?

ManagementX M Your question needs to be upc X+ alty Hospital-Part I coming year. The budget will include operating, capital, cash, and flexible budgets. er), cardiac (heart), and rhinoplasty (nose jobs) eviewed past records and considered changes in competition, the general economy, and of medical inflation, they have also made a first attempt at setting their prices ave projected that next year they will have 240 patients. They expect 120 oncology 000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 unt ultimately received. ay their own hospital bills or have healthcare insurance. Assume that private insurance and Medicaid have announced rates they will pay for the coming year as follows: lasty patients $10,000. Self-pay patients are supposed to pay the full charge, but te that bad debts are treated as an expense in healthcare. They may not be shown as a ts is shown as revenue, and then the uncollectible amount is shown as an expense. No tshown as a revenue or expense. Medicare/Medicaid Self-Pay Charity 50% 60% 20% 10% 10% 60% 10% 1096 1096 12:51 PM 3/6/2019 Extended Problem (2-36) Denison Specialty Hospital- Part I Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: oncology (cancer), cardiac (heart), and rhinoplasty (nose jobs) Section A The managers at Denison have been busy working. They have reviewed past records and considered changes in competition, the general economy, and overall medical trends. Using past charges and anticipated rates of medical inflation, they have also made a first attempt at setting their prices. Based on a thorough review and discussion of these data, they have projected that next year they will have 240 patients. They expect 120 oncology patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for oncology patients will average $50,000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 per patlent. However, those charges often are not the actual amount ultimately received The amount the hospital receives depends on whether patients pay their own hospital bills or have healthcare insurance. Assume that private insurance companies pay the full charge or list price. However, Medicare and Medicaid have announced rates they will pay for the coming year as follows: oncology patients $40,000, cardiac patients $30,000, and rhinoplasty patients S10,000. Self-pay patients are supposed to pay the full charge, but generally 25 percent 62% to pay the full charge, but generally 25 percent of self-pay charges becomes a bad debt. Note that bad debts are treated as an expense in healthcare. They may not be shown as a reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and then the uncollectible amount is shown as an expense. No payment for charity care is ever received, and charity care is not shown as a revenue or expense. The payer mix is as follows: Gift shop revenue is projected to be $120,000 for the current year and is expected to remain the same. However, this revenue will increase or decline in proportion to changes in patient volume Denison Hospital has an endowment of $1,000,000. It is invested as follows: $500,000 in 6 percent U.S. Government Bonds that pay interest annually $250,000 in AT&T stock, which pays a dividend of 8 percent annually $250,000 in growth stocks that pay no dividend Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, and within each program subdivide it by type of payer 2. Calculate endowment revenue on an accrual basis for the coming year 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previously. The revenue budget does not have to show all of the detail from requirements 1 and 2, but should show each Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, and within each program subdivide it by type of payer 2. Calculate endowment revenue on an accrual basis for the coming year. 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previously. The revenue budget does not have to show all of the detail from requirements 1 and 2, but should show each major source of revenue, such as patient services and endowment Section B The hospital expects to employ workers in the following departments Supplies are expected to be purchased throughout the year for the departments, as follows: Total $360,000 160,000 Radiology Nursing Administration20,000 Total Assume that all supply use varies with the number of patients. Denison Hospital currently pays rent on its buildings and equipment of $300,000 per year le Throu X -Courses-Blackboard Learn e Chegg: Financial Management X Your qu 1506326863/cfi/6/301/4/2/22/10/2@0:0 Extended Problem (2-36) Denison Specialty Hospital-Part Denison Specialty Hospital is planning its master budget for the coming year. The budget will in The hospital is noted for its three fine programs: oncology (cancer), cardiac (heart), and rhinopla Section A The managers at Denison have been busy working. They have reviewed past records and consid overall medical trends. Using past charges and anticipated rates of medical inflation, they have a Based on a thorough review and discussion of these data, they have projected that next year they patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for oncology patients will average $50,000. Cardiac patients will be ch per patient. However, those charges often are not the actual amount ultimately received The amount the hospital receives depends on whether patients pay their own hospital bills or ha companies pay the full charge or list price. However, Medicare and Medicaid have announced 1 oncology patients $40,000, cardiac patients $30,000, and rhinoplasty patients $10,000. Self-pay generally 25 percent of self-pay charges becomes a bad debt. Note that bad debts are treated as reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and the payment for charity care is ever received, and charity care is not shown as a revenue or expens The payer mix is as follows: Private Insurance Medicare/Medicaid 30% 20% 10% 50% 60% 20% Cardiac Rhinoplasty -Courses-Blackboard Learn Chegg: Financial Management M Your question nee 6863/cfi/6/301/4/2/22/10/14/8@0:100 The payer mix is as follows Private Insurance Medicare/Medicaid Self 30% 20% 1096 50% 60% 20% Cardiac 10 Rhinoplasty 60 Gift shop revenue is projected to be $120,000 for the current year and is expected to remain the same. Ho in proportion to changes in patient volume Denison Hospital has an endowment of $1,000,000. It is invested as follows: $500,000 in 6 percent U.S. Government Bonds that pay interest annually . $250,000 in AT&T stock, which pays a dividend of 8 percent annually . $250,000 in growth stocks that pay no dividend Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, type of payer 2. Calculate endowment revenue on an accrual basis for the coming year 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previous all of the detail from requirements 1 and 2, but should show each major source of revenue, such a Section B The hospital expects to employ workers in the following departments Radiology Nursing Administrati 1:11 .. 1111 38%- Screenshot (193).png 249 KB Financial Management Your question needs to be up + ce Medicare/Medicaid Self-Pay Charity 50% 60% 20% 1096 10% 60% 1096 1096 1096 current year and is expected to remain the same. However, this revenue will increase or decline is invested as follows: s that pay interest annually nd of 8 percent annually for the coming year. Subdivide revenue by program, and within each program subdivide it by asis for the coming year including all sources of revenue discussed previously. The revenue budget does not have to show t should show each major source of revenue, such as patient services and endowment. ng departments: Nursing Administration Total 12:51 PM 3/6/2019 ^ ManagementX M Your question needs to be upc X+ alty Hospital-Part I coming year. The budget will include operating, capital, cash, and flexible budgets. er), cardiac (heart), and rhinoplasty (nose jobs) eviewed past records and considered changes in competition, the general economy, and of medical inflation, they have also made a first attempt at setting their prices ave projected that next year they will have 240 patients. They expect 120 oncology 000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 unt ultimately received. ay their own hospital bills or have healthcare insurance. Assume that private insurance and Medicaid have announced rates they will pay for the coming year as follows: lasty patients $10,000. Self-pay patients are supposed to pay the full charge, but te that bad debts are treated as an expense in healthcare. They may not be shown as a ts is shown as revenue, and then the uncollectible amount is shown as an expense. No tshown as a revenue or expense. Medicare/Medicaid Self-Pay Charity 50% 60% 20% 10% 10% 60% 10% 1096 1096 12:51 PM 3/6/2019 Extended Problem (2-36) Denison Specialty Hospital- Part I Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: oncology (cancer), cardiac (heart), and rhinoplasty (nose jobs) Section A The managers at Denison have been busy working. They have reviewed past records and considered changes in competition, the general economy, and overall medical trends. Using past charges and anticipated rates of medical inflation, they have also made a first attempt at setting their prices. Based on a thorough review and discussion of these data, they have projected that next year they will have 240 patients. They expect 120 oncology patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for oncology patients will average $50,000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 per patlent. However, those charges often are not the actual amount ultimately received The amount the hospital receives depends on whether patients pay their own hospital bills or have healthcare insurance. Assume that private insurance companies pay the full charge or list price. However, Medicare and Medicaid have announced rates they will pay for the coming year as follows: oncology patients $40,000, cardiac patients $30,000, and rhinoplasty patients S10,000. Self-pay patients are supposed to pay the full charge, but generally 25 percent 62% to pay the full charge, but generally 25 percent of self-pay charges becomes a bad debt. Note that bad debts are treated as an expense in healthcare. They may not be shown as a reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and then the uncollectible amount is shown as an expense. No payment for charity care is ever received, and charity care is not shown as a revenue or expense. The payer mix is as follows: Gift shop revenue is projected to be $120,000 for the current year and is expected to remain the same. However, this revenue will increase or decline in proportion to changes in patient volume Denison Hospital has an endowment of $1,000,000. It is invested as follows: $500,000 in 6 percent U.S. Government Bonds that pay interest annually $250,000 in AT&T stock, which pays a dividend of 8 percent annually $250,000 in growth stocks that pay no dividend Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, and within each program subdivide it by type of payer 2. Calculate endowment revenue on an accrual basis for the coming year 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previously. The revenue budget does not have to show all of the detail from requirements 1 and 2, but should show each Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, and within each program subdivide it by type of payer 2. Calculate endowment revenue on an accrual basis for the coming year. 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previously. The revenue budget does not have to show all of the detail from requirements 1 and 2, but should show each major source of revenue, such as patient services and endowment Section B The hospital expects to employ workers in the following departments Supplies are expected to be purchased throughout the year for the departments, as follows: Total $360,000 160,000 Radiology Nursing Administration20,000 Total Assume that all supply use varies with the number of patients. Denison Hospital currently pays rent on its buildings and equipment of $300,000 per year le Throu X -Courses-Blackboard Learn e Chegg: Financial Management X Your qu 1506326863/cfi/6/301/4/2/22/10/2@0:0 Extended Problem (2-36) Denison Specialty Hospital-Part Denison Specialty Hospital is planning its master budget for the coming year. The budget will in The hospital is noted for its three fine programs: oncology (cancer), cardiac (heart), and rhinopla Section A The managers at Denison have been busy working. They have reviewed past records and consid overall medical trends. Using past charges and anticipated rates of medical inflation, they have a Based on a thorough review and discussion of these data, they have projected that next year they patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for oncology patients will average $50,000. Cardiac patients will be ch per patient. However, those charges often are not the actual amount ultimately received The amount the hospital receives depends on whether patients pay their own hospital bills or ha companies pay the full charge or list price. However, Medicare and Medicaid have announced 1 oncology patients $40,000, cardiac patients $30,000, and rhinoplasty patients $10,000. Self-pay generally 25 percent of self-pay charges becomes a bad debt. Note that bad debts are treated as reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and the payment for charity care is ever received, and charity care is not shown as a revenue or expens The payer mix is as follows: Private Insurance Medicare/Medicaid 30% 20% 10% 50% 60% 20% Cardiac Rhinoplasty -Courses-Blackboard Learn Chegg: Financial Management M Your question nee 6863/cfi/6/301/4/2/22/10/14/8@0:100 The payer mix is as follows Private Insurance Medicare/Medicaid Self 30% 20% 1096 50% 60% 20% Cardiac 10 Rhinoplasty 60 Gift shop revenue is projected to be $120,000 for the current year and is expected to remain the same. Ho in proportion to changes in patient volume Denison Hospital has an endowment of $1,000,000. It is invested as follows: $500,000 in 6 percent U.S. Government Bonds that pay interest annually . $250,000 in AT&T stock, which pays a dividend of 8 percent annually . $250,000 in growth stocks that pay no dividend Section A Requirements: 1. Calculate patient revenue on an accrual basis for the coming year. Subdivide revenue by program, type of payer 2. Calculate endowment revenue on an accrual basis for the coming year 3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previous all of the detail from requirements 1 and 2, but should show each major source of revenue, such a Section B The hospital expects to employ workers in the following departments Radiology Nursing Administrati 1:11 .. 1111 38%- Screenshot (193).png 249 KB Financial Management Your question needs to be up + ce Medicare/Medicaid Self-Pay Charity 50% 60% 20% 1096 10% 60% 1096 1096 1096 current year and is expected to remain the same. However, this revenue will increase or decline is invested as follows: s that pay interest annually nd of 8 percent annually for the coming year. Subdivide revenue by program, and within each program subdivide it by asis for the coming year including all sources of revenue discussed previously. The revenue budget does not have to show t should show each major source of revenue, such as patient services and endowment. ng departments: Nursing Administration Total 12:51 PM 3/6/2019 ^