Question

Good Will General Hospital is introducing a new service that anticipates to have 550 patient visits per year at an average cost per visit of $2,200 and and average billed charges per visit of $4,500.

Determine the gross revenue, contractual deductions, net patient revenue, total costs and net operating income that would result given the payer mix and terms in the table below.

Please show all of your work to receive credit. This question is worth 10 points.

Payor Class         Number of patient visits      Payment per case       Gross Revenue      Contractual Deductions     Net Patient Revenue   Total Costs     Net Operating Income

Medicare              350                                      $2,050

Medicaid               200                                      $1,650

Answer 1