Question 1: Create an annual proforma income statement in Excel for each health system in the program case study, using the inputs in the tables below.

Question 2: Does each system have a positive or negative margin?

• • If one/both have a negative margin, enumerate and explain three actions that could be taken to close the gap.

Southview Health System (144 Visits Total Over 250 Days)

51% Medicare = 73 visits

38% Commercial Private Insurance= 55 visits

9% Medicaid= 13 visits

2% self-pay= 3 visits

Central Valley Health System (144 Visits Total Over 250 Days)

54% Medicare= 78 visits

27%=39 visits

14% Commercial Private Insurance=20 visits

5% self-pay= 7 visits

Volume Cost Volume Cost \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Payer } & Payment \\ \hline Medicare: & $35.00 \\ \hline Medicaid: & $25.00 \\ \hline Commercial: & $45.00 \\ \hline Self-Pay & $5.00 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Position } & FTEs & CVHS Salaries SHS Salaries \\ \hline MD Salaries & 2.00 & $209,000 & $220,000 \\ \hline RN Salary & 2.00 & $76,000 & $80,000 \\ \hline APP Salary & 1.00 & $114,000 & $120,000 \\ \hline Medical Assistant & 1.00 & $38,000 & $40,000 \\ \hline Patient Service Representative & 1.00 & $38,000 & $40,000 \\ \hline Benefits & & 25.00% & 25.00% \\ \hline \end{tabular}