This document contains the questions posted to Bb Week 3 Assignment. Complete the assignment and post your answers to Bb by the due date. Next year Omega Healthcare will serve 5000 patients analyzed in the following manner 2100 Medicare patients who pay $975 1650 Medicaid patients who pay $915 450 managed care patients (MC#1) who pay $1250 per patient 275 managed care patients (MC#2) who pay charges minus a 20% discount 225 private insurance patients who pay $1,300 175 self-pay patients who pay 100% of charges 125 bad debt patients who pay on average 10% of charges Next year Omegas costs will be $1,000 per patient. 1. Calculate the total projected loss by assuming the charge per patient equals the cost per patient. (10 points) What is the total projected loss? 2. Submit the spreadsheet used to perform the calculations for Question 1. Note: The spreadsheet must have embedded formulas used to perform the calculations. Submit this worksheet. 1 (20 points) 3. Calculate the charge necessary to recover Omegas cost and achieve a net income of $500,000 (profit = $500,000). (10 points) 4. Use Excel to check the answer to Question 3 by calculating the profit/loss using the new charge from Question 3. Note: The spreadsheet must have embedded formulas used to perform the calculations. Submit this worksheet. 1 (10 points) 5. For the above referenced problem, assume that those payers that pay charges, or a portion thereof, limit Omegas charges to $1,500 per patient. What is the cost per person that will result a net income of $500,000? (10 points) 6. Using your spreadsheet, check the answers to Question 5 by calculating the profit using the new charge of $1,500 per patient and the cost per person calculated during Question 5. Note: The spreadsheet must have embedded formulas used to perform the calculations. Submit this worksheet. 1 (10 points) 7. Continuing from Questions 5 and 6 which payer is being subsidized (paying less than the cost to deliver care)? (10 points) 8. Why are underinsured or uninsured patients particularly vulnerable to the bitter bill described by Steven Brill by his February 20, 2013 article in Time? (10 points) 9. How does the hospital chargemaster contribute to problems with price transparency and exorbitant health care pricing? (10 points)