healthcare finance question! #18

18 Revenue budget: calculating net revenues . Calculate ZMG Hospitalist Practice'sJanuany and March Medicare net revenues if the fee for an admission is $200 and the ry, fee for a follow-up encounter is $100 (Exhibits I.1e and I.2a). Assume that Medicare reim- bures at a rate of 60% of charges. EXHIBIT I.1e WEIGHTED ENCOUNTERS BY PAYOR AND TYPE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Commercial Admissions2.838 Follow-up Total Medicare 1,892 1,768 1,908 1,772 1,692 1.736 1,776 1,828 1,760 1860 1,788 1,968 21.748 2838 2,652 2,860 2,656 2540 2,606 2,664 2740 2,638 2,792 2684 2,950 32620 4,730 4,420 4,768 4428 4232 4342 4440 4,568 4398 4,652 4472 4,918 4,368 Admissions 2,944 2748 2,964 2,756 2636 2704 2760 2,844 2,736 2,896 2784 3,060 33,832 4,416 4,124 4448 4,132 3,952 4,054 4,142 4,264 4,104 4,342 4,176 4,588 50,742 7,360 6,872 7,412 6,888 6,588 6,758 6,902 7,108 6,840 7,238 6,960 7,648 84,574 Follow-up Total Medicaid/Self-Pay Admissions Follow-up 630 590 636 590 564 580 592 610 586 620 596 656 7,250 1,050 982 1,060 982 940 968 988 1,018 978 1,032 992 1,092 12082 13,140 12,274 13240 12.98 11.760 12068 12,330 12.694 12216 12.922 12424 13,658 151.024 420 392 424 392 376 388 396 408 392 412 396 436 4,832 Total Total hibit L1c by the RVs (4 for admissions, 2 for follow upl in Exhibitd Note: Computed by multiplying the projected encounters by type and payor in Ex rounded to the nearest whole number TRATION OF HOW JANUARY'S NET PATIENT SERVICE UES IN THE ZMG HOSPITALIST PRACTICE'S OPERATING T (EXHIBIT 10.10) WERE DEVELOPED BUDGE Gross Patient Weighted Encounters Feesb b Revenues Percentage Discount Revenues Service Discount Net Patient Service Ax B) C-E) Commercial Admission Follow-up 1,892 $52.50 $99,330 2,838 $52.50 $148,995 $248,325 Total 4,730 30% s74498 $173,828 Medicare Admissions Follow-up 2,944$52.50 $154,560 4,416 $52.50 $231,840 7,360 $386,400 40% $154,560 S231840 Total Medicaid/Self-Pay Admissions llow-up Total Charity care 420 $52.50$22,050 630 $52.50 $33,075 1,050 $55,125 70% S38.588 $16,538 19% $165 $267,810 $422,040 ota $689,850 13,140 shibit l.1d New information. hpute Inthe case of relrb mutiplying the total of gross charges for each payor by the dicount percentage elf-Pay, 1 percent of Medicaid/Self-Pay net revenues is considered charity care by1 percent. count is computed by multiplying Medicaid/SelfPay net patient service revenues