Hospital A has undergone new management and decided to do a thorough review of its revenue cycle management process to determine its efficiency and effectiveness. They have contracted with you as a revenue cycle consultant to perform this review.

As part of your review, you have been asked to calculate and interpret certain key performance indicators (KPIs) as they relate to the revenue cycle process and to compare these to best practice benchmarks, the HFMA MAP Award Winners for 2017. The information needed to calculate the KPIs can be found in the attached PDF document, Hospital A Financial Statements & Information. Based upon this information do the following:

1. Complete the attached Hospital A KPI Worksheet. This worksheet includes the formulas, as presented in the textbook, for the ten KPIs needed for this assignment. It also includes statistical data for the 75^th percentile, 50^th percentile (median), and the 25^th percentile of the 2018 MAP award winners, as per http://www.hfma.org/MAP/MapAwards. You will use the median results (50^th percentile of the award winners) as a benchmark for industry best practices. On the spreadsheet, key in the numbers you use to calculate each indicator, and, use a formula in Excel to calculate the results. In other words, show your work so I can see how you derived your answers. The answers will vary somewhat from those included in the MAP awards data, but, should not vary inordinately. If your results seem extreme, this likely indicates that youve made a mistake.

HOSPITAL A FINANCIAL & OPERATING DATA BALANCE SHEET as of 12/31/18 Assets Cash and equivalents Short-term investments Total cash & short-term equivalents Gross patient accounts receivable Less: Allowance for doubtful accounts Net patient accounts receivable Inventories Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total Assets $1,650,000 750,000 $2,400,000 $3,169,600 $2,060,240 $1,109,360 750.000 $11,889,200 $12,650,000 3,795.000 $8,855,000 $20,744,200 Liabilities & Equity Accounts payable Accrued expenses Notes payable Total current liabilities Long-term debt Capital lease obligations Total long-term liabilities Net assets (equity) Total liabilities & equity $1,250,000 570,000 450,000 $2,270,000 $2,250,000 385,000 $2,635,000 $15,839,200 $20,744,200 STATEMENT OF OPERATIONS For the Period 01/01/18 - 12/31/18 Gross patient service revenue Contractual adjustments Charity care write-offs Provision for bad debt Total adjustments to revenue Net patient service revenue Other revenue Total operating revenue $15,848,000 7,924,000 396,200 316,960 $8,637,160 $7,210,840 1,225,000 $8,435,840 Wages & Benefits Purchased services Supplies Malpractice insurance Interest Expense Depreciation Other Operating Expenses Total expenses Operating income Nonoperating income Net income $5,248,000 925,000 875,000 108,000 95,000 175,000 925,000 $8,351,000 $84,840 675,000 $759,840 OTHER REVENUE CYCLE OPERATIONS DATA For the period 01/01/18 - 12/31/18 Point of service payments Total patient collections Gross patient revenue discharged not final billed (DNFB) Gross patient revenue final billed not submitted (FBNS) Total revenue cycle cost $1,370,060 $6,850,298 $303,934 $65,129 $239,760 ACCOUNTS RECEIVABLE AGING REPORT - 12/31/18 Total Gross Billed Patient A/R Total $3,169,600 Billed AR at 90 days or more HOSPITAL A FINANCIAL & OPERATING DATA BALANCE SHEET as of 12/31/18 Assets Cash and equivalents Short-term investments Total cash & short-term equivalents Gross patient accounts receivable Less: Allowance for doubtful accounts Net patient accounts receivable Inventories Total current assets Gross plant and equipment Accumulated depreciation Net plant and equipment Total Assets $1,650,000 750,000 $2,400,000 $3,169,600 $2,060,240 $1,109,360 750.000 $11,889,200 $12,650,000 3,795.000 $8,855,000 $20,744,200 Liabilities & Equity Accounts payable Accrued expenses Notes payable Total current liabilities Long-term debt Capital lease obligations Total long-term liabilities Net assets (equity) Total liabilities & equity $1,250,000 570,000 450,000 $2,270,000 $2,250,000 385,000 $2,635,000 $15,839,200 $20,744,200 STATEMENT OF OPERATIONS For the Period 01/01/18 - 12/31/18 Gross patient service revenue Contractual adjustments Charity care write-offs Provision for bad debt Total adjustments to revenue Net patient service revenue Other revenue Total operating revenue $15,848,000 7,924,000 396,200 316,960 $8,637,160 $7,210,840 1,225,000 $8,435,840 Wages & Benefits Purchased services Supplies Malpractice insurance Interest Expense Depreciation Other Operating Expenses Total expenses Operating income Nonoperating income Net income $5,248,000 925,000 875,000 108,000 95,000 175,000 925,000 $8,351,000 $84,840 675,000 $759,840 OTHER REVENUE CYCLE OPERATIONS DATA For the period 01/01/18 - 12/31/18 Point of service payments Total patient collections Gross patient revenue discharged not final billed (DNFB) Gross patient revenue final billed not submitted (FBNS) Total revenue cycle cost $1,370,060 $6,850,298 $303,934 $65,129 $239,760 ACCOUNTS RECEIVABLE AGING REPORT - 12/31/18 Total Gross Billed Patient A/R Total $3,169,600 Billed AR at 90 days or more