Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Charles T Horngren, John A Elliott

9th Edition

0131479725, 978-0131479722

More Books

Students also viewed these Accounting questions

Question

1. Too understand personal motivation.

Answered: 1 week ago