Please help me with question 15 from Chapter 10

Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications, 5th Edition

isbn 978-1-119-55384-7

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15. Revenue budget: calculating gross revenues. Calculate ZMG Hospitalist Practice's January, February, and March Medicare gross revenues if the fee for an admission is $300 and the fee for a follow-up encounter is $150 (Exhibits l.le and I.2a). EXHIBITI.1e WEIGHTED ENCOUNTERS BY PAYOR AND TYPE Jan Feb Mar Jun Jul Apr Aug Oct Nov Sep Dec May Total Commercial Admissions Follow-up 1,892 2,838 1,768 2,652 1,908 2,860 1,772 2,656 1,692 2,540 1,736 2,606 1,776 2,664 1,828 2,740 1,760 2,638 1,860 2,792 1,788 2,684 1,968 2,950 21,748 32,620 Total 4,730 4,420 4,768 4,428 4,232 4,342 4,440 4,568 4,398 4,652 4,472 4,918 54,368 Medicare Admissions Follow-up 2,944 4,416 2,748 4,124 2,964 4,448 2,756 4,132 2,636 3,952 2,704 4,054 2,760 4,142 2,844 4,264 2,736 4,104 2,896 4,342 2,784 4,176 3,060 4,588 33,832 50,742 Total 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 Medicaid/Self-Pay Admissions 420 Follow-up 630 392 424 376 388 392 590 396 592 408 610 392 586 412 620 396 596 436 656 4,832 7,250 590 636 564 580 Total 1,050 982 1,060 982 940 968 988 1,018 978 1,032 992 1,092 12,082 Total 13,140 12,274 13,240 12,298 11,760 12,068 12,330 12,694 12,216 12,922 12,424 13,658 151,024 Computed by multiplying the projected encounters by type and payor in Exhibit Lic by the RVUS (4 for admissions, 2 for follow-up) in Exhibit 1.1d, rounded to the nearest whole number. 506 CHAPTER 10 BUDGETING EXHIBIT 1.2a ILLUSTRATION OF HOW JANUARY'S NET PATIENT SERVICE REVENUES IN THE ZMG HOSPITALIST PRACTICE'S OPERATING BUDGET (EXHIBIT 10.10) WERE DEVELOPED D E A Gross Patient Service Revenues (A x B) F Net Patient Service Revenues (C-E) Weighted Encounters (*) Fees (6) Discount Percent (6) Discount (9) Commercial Admissions Follow-up 1,892 2,838 $52.50 $52.50 $99,330 $148,995 Total 4,730 $248,325 30% $74,498 $173,828 Medicare Admissions Follow-up 2,944 4,416 $52.50 $52.50 $154,560 $231,840 459bbo Total 7,360 $386,400 40% $154,560 $231,840 Medicaid/ Self-Pay Admissions Follow-up 420 $52.50 $52.50 $22,050 $33,075 630 1,050 Total Charity care $55,125 70% $38,588 1% $165 $16,538 Total 13,140 $689,850 $267,810 $422,040 *Exhibit l.id. bNew information. The discount is computed by multiplying the total of gross charges for each payor by the discount percentage. the case of Medicaid/Self-Pay, 1 percent of Medicaid/Self-Pay net revenues is considered charity care; therefore , this additional discount is computed by multiplying Medicaid/Self-Pay net patient service revenues by 1 percent