Revenue budget calculating net revenues Calculate ZMG Hospitalist Practices January, February, and March Medicare net revenues if the fee for an admission is $200 and the fee for a follow up encounter is $100 (Exhibits I 1e and I 2a) Assume that Medicare reimburses at a rate of 60 of charges Exhibit 1 1e Weighted Encounters by payor and type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Commercial Admissions 1,892 1,768 1,908 1,772 1,692 1,736 1,776 1,828 1,760 1,860 1,788 1,968 21,748 Follow up 2,838 2,652 2,860 2,656 2,540 2,606 2,664 2,740 2,638 2,792 2,684 2,950 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 2,944 2,748 2,964 2776 2636 2704 2760 2844 2736 2896 2784 3060 33,832 Follow up 4,416 4,124 4,448 4,132 3,952 4,054 4,142 4,264 4,104 4,342 4,176 4,588 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 420 392 424 392 376 388 396 408 392 412 396 436 4,832 Follow up 630 590 636 590 564 580 592 610 586 620 596 656 7,250 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 Note Computed by multiplying the projected encounters by type and payor in Exhibit 1 1c by the RVUs (4 for admissions, 2 for follow up) in exhibit 1 1d, rounded to the nearest whole number EXHIBIT I 2a ILLUSTRATION OF HOW JANUARYS NET PATIENT SERVICE REVENUES IN THE ZMG HOSPITALIST PRACTICES OPERATING BUDGET (EXHIBIT 10 10) WERE DEVELOPED A Weighted Encounters a B Fees b C Gross Patient Service Revenues (A x B) D Discount Percentage b E Discount c F Net Patient Service Revenues (C E) Commercial Admissions 1,892 $52 50 $99,330 Follow up 2,838 $52 50 $148,995 Total 4,730 $248,325 30 $74,498 $173,828 Medicare Admissions 2,944 $52 50 $154,600 Follow up 4,416 $52 50 $231,840 Total 7,360 $386,400 40 $154,560 $231,840 Medicaid Self Pay Admissions 420 $52 50 $22,050 Follow up 630 $52 50 $33,075 Total 1,050 $55,125 70 $38,588 $16,538 Charity Care 1 $165 Total 13,140 $689,850 $267,810 $422,040

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Revenue budget: calculating net revenues. Calculate ZMG Hospitalist Practices January, February, and March Medicare net revenues if the fee for an admission is $200 and

Revenue budget: calculating net revenues. Calculate ZMG Hospitalist Practices January, February, and March Medicare net revenues if the fee for an admission is $200 and the fee for a follow-up encounter is $100 (Exhibits I.1e and I.2a). Assume that Medicare reimburses at a rate of 60% of charges.

Exhibit 1.1e Weighted Encounters by payor and type

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Total
Commercial
Admissions	1,892	1,768	1,908	1,772	1,692	1,736	1,776	1,828	1,760	1,860	1,788	1,968	21,748
Follow-up	2,838	2,652	2,860	2,656	2,540	2,606	2,664	2,740	2,638	2,792	2,684	2,950	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	2,944	2,748	2,964	2776	2636	2704	2760	2844	2736	2896	2784	3060	33,832
Follow-up	4,416	4,124	4,448	4,132	3,952	4,054	4,142	4,264	4,104	4,342	4,176	4,588	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	392	424	392	376	388	396	408	392	412	396	436	4,832
Follow-up	630	590	636	590	564	580	592	610	586	620	596	656	7,250
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

Note: Computed by multiplying the projected encounters by type and payor in Exhibit 1.1c by the RVUs (4 for admissions, 2 for follow-up) in exhibit 1.1d, rounded to the nearest whole number

EXHIBIT I.2a ILLUSTRATION OF HOW JANUARYS NET PATIENT SERVICE REVENUES IN THE ZMG HOSPITALIST PRACTICES OPERATING BUDGET (EXHIBIT 10.10) WERE DEVELOPED

	A Weighted Encounters^a	B Fees^b	C Gross Patient Service Revenues (A x B)	D Discount Percentage^b	E Discount^c	F Net Patient Service Revenues (C E)
Commercial
Admissions	1,892	$52.50	$99,330
Follow-up	2,838	$52.50	$148,995
Total	4,730		$248,325	30%	$74,498	$173,828
Medicare
Admissions	2,944	$52.50	$154,600
Follow-up	4,416	$52.50	$231,840
Total	7,360		$386,400	40%	$154,560	$231,840
Medicaid/Self Pay
Admissions	420	$52.50	$22,050
Follow-up	630	$52.50	$33,075
Total	1,050		$55,125	70%	$38,588	$16,538
Charity Care				1%	$165
Total	13,140		$689,850		$267,810	$422,040