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For this case study, we ll take a look at St . Sebastian Health System, a modest - sized Midwest hospital system. The CFO has
For this case study, well take a look at St Sebastian Health System, a modestsized Midwest hospital system. The CFO has brought you in to examine some longterm financial trends in his system. She is projecting a loss of $ million in which is concerning, since and all had modest operating gains. She is concerned that state and federal aid payments received in those years but not related to the Covid pandemic may have masked some underlying weakness in St Sebastians operations. So shes asked you to take a look at the financial picture from and compare that to the year. In the year St Sebastian had patient visits combined IP and OP with an average cost per visit of $ with an average charge per visit of $ In the average cost per visit was $ and the average charge per visit was $ In Commercial plans were reimbursing paying St Sebastian of their charges, Medicare paid of charges, Medicare Advantage paid and Medicaid paid of charges. Uninsured patients were paying around of charges. In Commercial plans paid of charges, Medicare paid of charges, Medicare Advantage paid and Medicaid paid of charges. Uninsured patients paid A complete look at the breakout of total visits is below: Part B Prepare an exhibit similar to what you did in Part A but this time, project what things will look like in ten years As a help, assume the following are true and should be considered in this order: Looking at Total Services and Charges: Overall Services, and Total Charges grow at same rates as Medicare grows at same rate as but MA is of total Medicare by vs in Medicaid and selfpay stay at same portion of total ie if Medicaid was of services in it will still be in Commercial svcs and charges 'fill in the remainder for services and charges Looking at Payments and Costs Payments and Cost should reflect $$svc growing at same rate observed For MA only, for assume things dont get worse and they still earn of Medicare Once done comment on what you observe. Are the trends positive or negative? How would you explain whats happening to your CEO? If your hospitals goal is to achieve a operating margin, how much would you have to add to the projected bottom line by to make that happen? Give three specific strategies youd recommend pursuing to get that done. Patient visits Commercial Medicare Medicare Advantage Medicaid Uninsured Selfpay Total Visits
For this case study, well take a look at St Sebastian Health System, a modestsized Midwest hospital system. The CFO
has brought you in to examine some longterm financial trends in his system. She is projecting a loss of $ million in
which is concerning, since and all had modest operating gains. She is concerned that state and
federal aid payments received in those years but not related to the Covid pandemic may have masked some
underlying weakness in St Sebastians operations. So shes asked you to take a look at the financial picture from
and compare that to the year.
In the year St Sebastian had patient visits combined IP and OP with an average cost per visit of $
with an average charge per visit of $ In the average cost per visit was $ and the average charge per
visit was $ In Commercial plans were reimbursing paying St Sebastian of their charges, Medicare
paid of charges, Medicare Advantage paid and Medicaid paid of charges. Uninsured patients were
paying around of charges. In Commercial plans paid of charges, Medicare paid of charges,
Medicare Advantage paid and Medicaid paid of charges. Uninsured patients paid A complete look at the
breakout of total visits is below:
Part B Prepare an exhibit similar to what you did in Part A but this time, project what things will look like in ten years
As a help, assume the following are true and should be considered in this order:
Looking at Total Services and Charges:
Overall Services, and Total Charges grow at same rates as
Medicare grows at same rate as
but MA is of total Medicare by vs
in
Medicaid and selfpay stay at same portion of total ie if Medicaid was of
services in it will still be in
Commercial svcs and charges 'fill in the remainder for services and charges
Looking at Payments and Costs
Payments and Cost should reflect $$svc growing at same rate observed
For MA only, for assume things dont get worse and they still earn of Medicare
Once done comment on what you observe. Are the trends positive or negative? How would you explain whats
happening to your CEO? If your hospitals goal is to achieve a operating margin, how much would you have to add
to the projected bottom line by to make that happen? Give three specific strategies youd recommend pursuing to
get that done.
Patient
visits Commercial Medicare
Medicare
Advantage Medicaid
Uninsured
Selfpay
Total
Visits
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