cJ Practice valuation. Coff providers in the north tory surgery center. A one nurse practition can get guaranteed sala recently due to poor receptionist is retiring, and the following information por lo drop any service she now offers? on Coffee Healthcare Associates (CHA) wants to expand its network of he northwest section of the city to build its referral base for its new ambula- center. A well-respected group of three pain management physicians and wractitioner have expressed interest in joining forces with CHA, but only if they anteed salaries for at least three years. Their collections have been dropping e to poor follow-up on denials and accounts receivable, the current secretary! is retiring, and they are ready to negotiate. The provider group has offered lowing information on initial compensation requirements and payor mix and volume: Provider Desired Compensation Physician 1 (owner) Physicians 2,3 Nurse practitioner $280,000 $235,000 $125,000 Insurance Annual Visit Volume Commercial Medicare Medicaid Self-pay Other 10,900 8,100 575 90 55 Variable costs are estimated at $32 per visit, and the practice's billing expense is 9 percent of collections. icaid, 20%; and self-pay believes that overall volu income, despite ti tion to increase by 5 perc me CHA acknowledges the current payor mix, its marketing director feels that Medicaid It will make up a much higher proportion of patients, one more closely matching work's payor mix. Those proportions are: commercial, 45%; Medicare, 33%; Med- 19; and self-pay and other, 1% each. Additionally, due to past experience, CHA unat overall volume will drop by 10% once the providers receive guaranteed despite their insistence otherwise. Last, CHA expects the providers compensa- se by 5 percent per year in accordance with historical network increases. The table below shows expected reimbursements per visit over the next three years CHA's billing expense is 9% of collections. How would CHA fare each year under this acquisition? (Hint: see Appendix H.) Insurance Average Reimbursement per Visit Commercial Medicare Medicaid Self-pay Other $112.50 $84.00 $67.00 $21.75 $99.00 The table below shows expected reimbursements per visit over the next three vi CHA's billing expense is 9% of collections. How would CHA fare each year under this acquisition? (Hint: see Appendix H.) Insurance Average Reimbursement per Visit Commercial Medicare Medicaid Self-pay Other $112.50 $84.00 $67.00 $21.75 $99.00 cJ Practice valuation. Coff providers in the north tory surgery center. A one nurse practition can get guaranteed sala recently due to poor receptionist is retiring, and the following information por lo drop any service she now offers? on Coffee Healthcare Associates (CHA) wants to expand its network of he northwest section of the city to build its referral base for its new ambula- center. A well-respected group of three pain management physicians and wractitioner have expressed interest in joining forces with CHA, but only if they anteed salaries for at least three years. Their collections have been dropping e to poor follow-up on denials and accounts receivable, the current secretary! is retiring, and they are ready to negotiate. The provider group has offered lowing information on initial compensation requirements and payor mix and volume: Provider Desired Compensation Physician 1 (owner) Physicians 2,3 Nurse practitioner $280,000 $235,000 $125,000 Insurance Annual Visit Volume Commercial Medicare Medicaid Self-pay Other 10,900 8,100 575 90 55 Variable costs are estimated at $32 per visit, and the practice's billing expense is 9 percent of collections. icaid, 20%; and self-pay believes that overall volu income, despite ti tion to increase by 5 perc me CHA acknowledges the current payor mix, its marketing director feels that Medicaid It will make up a much higher proportion of patients, one more closely matching work's payor mix. Those proportions are: commercial, 45%; Medicare, 33%; Med- 19; and self-pay and other, 1% each. Additionally, due to past experience, CHA unat overall volume will drop by 10% once the providers receive guaranteed despite their insistence otherwise. Last, CHA expects the providers compensa- se by 5 percent per year in accordance with historical network increases. The table below shows expected reimbursements per visit over the next three years CHA's billing expense is 9% of collections. How would CHA fare each year under this acquisition? (Hint: see Appendix H.) Insurance Average Reimbursement per Visit Commercial Medicare Medicaid Self-pay Other $112.50 $84.00 $67.00 $21.75 $99.00 The table below shows expected reimbursements per visit over the next three vi CHA's billing expense is 9% of collections. How would CHA fare each year under this acquisition? (Hint: see Appendix H.) Insurance Average Reimbursement per Visit Commercial Medicare Medicaid Self-pay Other $112.50 $84.00 $67.00 $21.75 $99.00