The physicians at a private orthopedic practice are seeking to estimate the revenue they can expect to receive next period. Data regarding arthroscopic ACL reconstructive surgeries performed by physicians during March are provided below.

Number of procedures performed100

Gross charge per procedure$17,000

Insurance status of patientsNumber of proceduresReimbursement rate

Medicare4050%

Medicaid3040%

Private insurance2070%

Self-pay10100%

The physicians have requested a forecast of next month's (April) activity.

Trend analysis suggests that the following changes will occur in April:

Increase in the number of procedures10%

Increase in the gross charge per procedure2%

The payer reimbursement rates and payer mix are expected to be the same as in March.

Part (a)

iHow many procedures are forecast for April?

iiHow many of the forecasted procedures are expected to be provided to Medicare patients?

iiiHow many of the forecasted procedures are expected to be provided to Medicaid patients?

ivWhat is the forecasted gross charge per procedure for April?

vWhat is the forecast net revenue per procedure from Medicare patients in April?

viWhat is the forecast net revenue per procedures from Medicaid patients in April?

Part (b)

Provide a forecast of April's revenue expectations by completing the following table.

Per procedureTotal (all procedures)

___________________________________________________

Insurance No. of Reimb. rate Gross Rev. Net Rev. Gross Rev. Net Rev. status Proced.

of patients

______________________________________________________________________________________________________

Medicare50% ??

Medicaid40% ??

Private?70%?? ? Insurance

Self-pay ?100% ? ? ?

Totals ??