Question
The physicians at Ada Orthopedics are preparing an estimate of future revenues. The following data are known based on procedures performed last year. Number of
The physicians at Ada Orthopedics are preparing an estimate of future revenues. The following data are known based on procedures performed last year.
- Number of procedures performed: 597
- Gross charge per procedure: $17,100
Insurance status of patients Number of procedures Reimbursement rate Medicare 202 46% Medicaid 160 32% Private insurance 222 58% Self-pay 13 100%
For next year, trend analysis suggests a 6% decrease in the number of procedures and a 8% increase in the gross charge per procedure. Assume that the payer reimbursement rates and payer mix are expected to be the same next year.
What is the forecasted net revenue per procedure from Medicare patients next year? (Round to the nearest whole dollar, e.g., $123.)
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