Question: *** please show all work so i am able to get the needed credit**** Determine the amount of net operating income that would result for

*** please show all work so i am able to get the needed credit****

Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows:

30 Medicare cases

pay $2,000 per case

30 Blue Cross Blue Shield cases

pay $2,200 per case

20 commercial cases

pay 100 percent of charges

10 Medicaid cases

pay average cost

8 self-pay cases

pay 100 percent of charges

2 charity cases

pay nothing

Average cost per case is expected to be $2,200, and the average charge per case is $2,500

>>>>Calculate Gross patient revenue and deductions from gross patient revenue1

>>>>you should have four categories:

Gross patient revenue

Deductions from gross patient revenue

Net patient revenue

Total expenses

Excess of revenues over expenses ($2,000)***************

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