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Read the case situation (below) Prepare a revenue budget for the below agency (**A chart format is required- MS Word or Excel) Indicate whether the

Read the case situation (below)

  1. Prepare a revenue budget for the below agency(**A chart format is required- MS Word or Excel)
  2. Indicate whether the agency will have profit or loss in a narrative format- 3-4 paragraphs (APA format)- Support your response with information from your 2 course textbooks.
  3. Case: Revenue for Home Health

  4. Revenue for Smith's Home Health Agency is derived from a variety of payer sources. Blue Cross will only reimburse the agency $60 for a nurse visit, even though the agency normally charges $75. Aetna Insurance Company has agreed to pay 80% of the agency's normal charge. Medicaid regulations call for it to pay the cost of care; the cost of care for each visit is $45. Suppose further that Medicare has a fee schedule that calls for it to pay $50 for this type of patient. The agency gives a $50 discount to poor uninsured patients, charging them only $25. Smith expects50Blue Cross,25Aetna,30Medicaid,60Medicare,35uninsured poor, and30self-pay visits. Of the self-pay-patients, three quarters pay the full charge, but one-quarter never pay any of the bills. Prepare a revenue budget for Saunders Home Health Agency. Will the agency make a profit?

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Revenue Budget for Saunders Home Health Agency Payer Source Number of Visits Expected Revenue per Visit Total Revenue Blue Cross 50 60 3000 Aetna Insu... blur-text-image

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