Assume that Valley Forge Hospital has only the following three payer groups: Payer Number of Average Revenue Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. a. Using the profit/loss format from our textbook and PowerPoints in this module, determine the hospital's net income, therefore showing your work to demonstrate how you got to the net income answer. b. Assume that half of the 100,000 covered lives in the commercial payer group (above) will be moved into a capitated plan. All utilization and cost data remain the como What RMPM roto will the hospital have to chorgo to retain its Port A not incomo

Assume that Valley Forge Hospital has only the following three payer groups: Payer Number of Average Revenue Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. a. Using the profit/loss format from our textbook and PowerPoints in this module, determine the hospital's net income, therefore showing your work to demonstrate how you got to the net income answer. b. Assume that half of the 100,000 covered lives in the commercial payer group (above) will be moved into a capitated plan. All utilization and cost data remain the como What RMPM roto will the hospital have to chorgo to retain its Port A not incomo

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 4PA: Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the...

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Assume that Valley Forge Hospital has only the following three payer groups: Number of Average Revenue Payer Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. c. What overall net income would be produced if the admission rate of the capitated group (from part B above) were reduced from the commercial level (originally listed as $2,500 total from above) by 10 percent? d. For this same capitated group, assuming that utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for this same capitated group were lowered to $2,200 (from the original $2,500 listed above)?
Assume that a certain nursing home has two categories of payers. Medicaid pays las $60.00 per day and private pay patients pay the established per diem, but approximately 10 percent of private pay charges are not collected. If 50 percent of the patients are Medicaid and 50 percent are private pay, what rate must be set to rep generate $150,000 in profit? Variable costs are $45.00 per day and fixed costs are expected to be $1,000,000. Expected volume is 50,000 patient days. Using this data and assuming that the nursing home charges $100 per day, what would be the nursing home's required volume (in patient days) in order to make $150,000 profit?
Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the Goodview System. The projected annual revenues, annual costs, capital outlays, and project life for each system (in after-tax cash flows) are as follows: Assume that the cost of capital for the company is 8 percent. Required: 1. Calculate the NPV for the Clearlook System. 2. Calculate the NPV for the Goodview System. Which MRI system would be chosen? 3. What if Keating Hospital wants to know why IRR is not being used for the investment analysis? Calculate the IRR for each project and explain why it is not suitable for choosing among mutually exclusive investments.
4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $30,000 cost of goods sold that Worley incurred serving each hospital.)
In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent variable. c. is the variable rate. d. is the total fixed cost. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
San Juan Health Department's dental clinic projects the following costs and rates for the year 20XX.Total fixed costs: $225,000Variable costs: $60 per patientCharges: $250 per patient Using the information above, determine the break-even point in patients? Using the information above, determine the break-even point in dollars? If the clinic decided it would like to make a profit of $8,000, what is the new break-even point in patients? If the clinic decided it would like to make a profit of $8,000 at 1,226 patients, what is the new break-even point in dollars?
The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service linesthe Emergency Room (ER) and the Operating Room (OR). SHHs current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal 300,000. The table below shows expected patient volume for both lines. Calculate the amount of nursing costs that the current cost system assigns to the ER and to the OR.
1. Bronx Lebanon Diagnostic Care has the following cost structure: Fixed Costs $800,000 Variable cost per procedure $35 Charge (revenue) per procedure $110 Assume that the Bronx Lebanon Diagnostic Care expects to perform 7,500 procedures in the coming year. a. Construct the groups base case projected P & L statement. Insert your response here. b. What is the group’s contribution margin? Insert your response here. c. What is the breakeven point? (in number of procedures) Insert your response here. d. Let say they contract with one HMO for all 7,500 procedures and the plan proposes a 20 percent discount from charges. Answer questions a,b,c under these conditions.
Fill in the blanks for each of the following independent cases. E (Click the icon to view the cases.) (For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Total Operating Contribution Case Revenues Costs Costs Costs Income Margin Percentage $ 2,800 $ 500 $ 400 $ 900 $ 1,900 82 % a. b. $ 2,900 2$ 400 2$ 1,200 % - X Data Table Contribution Fixed Costs Margin Percentage Variable Total Operating Income Case Revenues Costs Costs Case a. $ 500 $ 900 $ 1,900 Case b. $ 2,900 $ 400 $ 1,200 Case c. 2$ 1,000 $ 600 $ 1,000 Case d. $ 1,800 $ 400 50% Print Done
If you were reviewing a financial plan for a mature medical device company, which of the following line items would potentially look out of line? a. 72 percent gross margin b. R&D expenses equal to 12 percent of sales c. SG&A expenses equal to 49 percent of sales d. None of the above
The cost services is 75% of service income. If the gross profit is P50,000, how much is the service income? a. P 37,500 b. P 66,667 c. P200,000 d. None of the choices
Using 0 & 3,000 patient-days, variable cost per patient-day would be: a.$5.00 b.$10.00 c.$6.67 d.$7.17