Can you please help me understand and provide me with the step of how we should calculate the Gross patient service revenue (GPSR) in this case? can you please provide step by step process. It would be great.

Please help me with this and please give me step by step for the calculation of GPSR.

Thank you in advance

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