Question

. Reimbursement Methods

A. A hospital admits 525 patients per month who stay an average of five (5.0) days per admission. This hospital charges $12,000 per admission and incurs $7,100 in costs ($4,000 fixed and $3,100 variable) per patient. Assume all patients are reimbursed under the same reimbursement method, complete the table and calculate net income for the hospital under each reimbursement method.

            A.         80% of Charges:

            B.         Cost:

            C.         $1,550 per diem:

            D.         $7,250 per case:

            E.         $195 capitation (per member per month): assume the number of covered lives is 15,000.

                                                Charge             Cost                 Per Diem          Per Case          Capitation

Total Revenue                        $ _______ _______ _______ _______ _______

Less: Contractual discounts    _______ _______ _______ _______ _______

Net Revenue                             _______ _______ _______ _______ _______

Less: Expenses                                    _______ _______ _______ _______ _______

Net Income                               $          _______ _______ _______ _______ _______

Answer 1