Question
Need help asap with the attached document below. Use the information in the table below for problems 33 to 41. The financial information presented below
Need help asap with the attached document below.
Use the information in the table below for problems 33 to 41. The financial information presented below for ABC Healthcare was filed with the Department of Insurance.
Current YearPrevious Year
Cash and Short-Term Investments$34,094,076$11,863,992
Receivables13,036,03715,112,834
Other Current Assets3,650,3746,306,384
Total Current Assets$50,780,487$33,283,210
Long-Term Investments$134,233,202$126,679,509
Property, Plant and Equipment1,108,3302,216,891
Total Assets$186,122,019$162,179,610
Current Liabilities$70,301,625$66,950,203
Other Liabilities4,017,7893,949,442
Net Worth111,802,60591,279,965
Total Liabilities and Net Worth$186,122,019$162,179,610
Member Months4,820,3514,721,314
Premium Revenue$512,600,104$515,079,684
Medicaid Revenue58,969,63263,979,870
Investment Income8,637,9156,640,969
Total$580,207,651$585,700,523
Physician Services157,313,074148,868,294
Other Professional23,733,16321,526,611
Inpatient110,813,471113,989,688
Incentive Pool1,834,5834,677,527
Outpatient103,981,20297,746,260
Pharmacy62,764,86667,567,497
Access Fees341,685402,285
Reinsurance2,321,5441,682,121
Coordination of Benefits(434,217)(80,097)
Total Medical & Hospital$462,669,371$456,380,186
Administration76,772,84676,807,222
Total Expenses$539,442,217$533,187,408
Income Before Tax40,765,43452,513,115
? Tax12,685,28517,682,052
Net Income$28,080,149$34,831,063
1.Information in the insurance filing shows that 101,909 hospital patient days of care were provided to members in the current year. How many patient days per 1,000 members were provided?
2.What was the average subscriber revenue realized Per Member Per Month (PMPM) in both the current year and the previous year?
3.Why did investment income increase in the current year?
4.What was the average yield on cash and investments during the current year?
5.Net Worth increased by $20,522,640 during the current year, but Net Income was $28,080,149. What might have accounted for this difference?
6.Is ABC Healthcare more or less debt-financed than the average for health plans (refer to the textbook chapter for industry averages)?
7.Calculate ABC?s total Days Cash on Hand (ignore depreciation and other non-cash expenses). Does ABC have more or less cash than industry averages?
8.What is the main reason that ABC?s margins declined in the current year?
9.Physician service expense PMPM increased by what dollar amount in the current year?
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