Question
From the following data, determine the amount of revenue that Gulf Coast Regional Hospital needs to be generated to meet the hospitals financial requirements: Revenue
From the following data, determine the amount of revenue that Gulf Coast Regional Hospitalneeds to be generated to meet the hospitals financial requirements:
Revenue to Meet Hospital Financial Requirements
Volume
Medicare cases 800
Cost-paying cases 675
Charity care and bad-debt cases 200
Charge-paying cases 450
Total cases 2,125
Financial data
Budgeted expenses $ 5,000,000
Debt principal payment 300,000
Working capital increase 225,000
Capital expenditures 550,000
Present payment structure
Medicare pays only $2,000 per case.
All other cost payers pay their share of existing expense
Equation to use:
Revenue = | Budgeted expense + Desired net income Noncharge-paying payments |
Proportion of charge-paying patients |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started