Perform trend analysis on the MHS statement of revenue and expenses.

APPENDIX 28-A Metropolis Health Systems Financial Statements and Excerpts from Notes

Metropolis Health System Balance Sheet March 31, 20X3 and 20X2
Assets
Current Assets
Cash and cash equivalents	$1,150,000	$400,000
Assets whose use is limited	825,000	825,000
Patient accounts receivable	8,700,000	8,950,000
Less allowance for bad debts	(1,300,000)	(1,300,000)
Other receivables	150,000	100,000
Inventories of supplies	900,000	850,000
Prepaid expenses	200,000	150,000
Total Current Assets	10,625,000	9,975,000
Assets Whose Use Is Limited
Corporate funded depreciation	1,950,000	1,800,000
Under bond indenture agreementsheld by trustee	1,425,000	1,475,000
Total Assets Whose Use Is Limited	3,375,000	3,275,000
Less Current Portion	(825,000)	(825,000)
Net Assets Whose Use Is Limited	2,550,000	2,450,000
Property, Plant, and Equipment, Net	19,300,000	19,200,000
Other Assets	325,000	375,000
Total Assets	$32,800,000	$32,000,000

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Metropolis Health System Balance Sheet March 31, 20X3 and 20X2
Liabilities and Fund Balance
Current Liabilities
Current maturities of long-term debt	$525,000	$500,000
Accounts payable and accrued expenses	4,900,000	5,300,000
Bond interest payable	300,000	325,000
Reimbursement settlement payable	100,000	175,000
Total Current Liabilities	5,825,000	6,300,000
Long-Term Debt	6,000,000	6,500,000
Less Current Portion of Long-Term Debt	(525,000)	(500,000)
Net Long-Term Debt	5,475,000	6,000,000
Total Liabilities	11,300,000	12,300,000
Fund Balances
General Fund	21,500,000	19,700,000
Total Fund Balances	21,500,000	19,700,000
Total Liabilities and Fund Balances	$32,800,000	$32,000,000

1. Your units gross charges for the period to date amount to $200,000.

2. The uniform gross charge for each procedure in your unit is $100.

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3. The unit receives revenue from four major payers. The number of procedures performed for the period totals 2,000. Of that total, the number of procedures per payer (stated as a percentage) is as follows:Payer 1 = 30%Payer 2 = 40%Payer 3 = 20%Payer 4 = 10%

4. The following contractual payment arrangements are in effect for the current period. The percentage of the gross charge that is currently paid by each payer is as follows:Payer 1 = 80% [Medicare]Payer 2 = 70% [Commercial managed care plans]Payer 3 = 50% [Medicaid]Payer 4 = 90% [Self-pay]

Q: How many procedures are attributed to each payer?

Q: How much is the net revenue per procedure for each payer, and how much is the contractual allowance per procedure for each payer?

Q: How much is the total net revenue for each payer, and how much is the total contractual allowance for each payer?