Question

5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed Costs Variable costs per inpatient day Charge (revenue) per inpatient day $10,000,000 200 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospitals base case projected P&L statement b. What is the hospitals breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now assume that 20 percent of the hospitals inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?

accounting question

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
accounting question 5.4. General Hospital, a not-for-profit acute care facility, has the following cost structure for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • General Hospital , a not-for-profit acute care facility, has estimated the following costs for its inpatient...

    General Hospital , a not-for-profit acute care facility, has estimated the following costs for its inpatient services: Fixed Costs $ 15,000,000 Variable Cost Per Inpatient day $600 The hospital expects to have 8,000 inpatient days next year. a. What is the hospital’s underlying cost structure? b. What are the hospitals expected total cost? c. What is the hospital’s estimated total cost at 12,500 inpatient days? At 17,500patient days?

  • North Central Bronx hospital has estimated the following costs for its in-patient services Fixed cost $12,000,000...

    North Central Bronx hospital has estimated the following costs for its in-patient services Fixed cost $12,000,000 Variable cost per inpatient day $300 North Central Bronx hospital expect to have 18,000 in patient day neat year, » What is the hospital's underlying cast structure? B. What are the hospitals expected total cost? What is the hospital's estimated to tal cost at 19000 inpatient days? At 25,000 patient day? Do what is the average cost per patient day at 19,000, 25000 and...

  • A hospital has contracted with an HMO to provide acute care inpotient services for $1,000 per...

    A hospital has contracted with an HMO to provide acute care inpotient services for $1,000 per day, subiject to a 10 percent withhold. The 600 days pe l 00 m er rs at SLO 0 per day or S60,00 per 1 000 mbers. The hospitalrisk pcol alle split equally between the hogi tal and aprimory care phy cian gr p. for y 450--.000 members were utilized in the ferst year,how much would the hospital be paid per 1,000members? proposed budget...

  • As the newly hired coding manager at your 300-bed acute care facility, you are surprised that...

    As the newly hired coding manager at your 300-bed acute care facility, you are surprised that there are no coding productivity standards in place. Your organization outsources the same day surgery accounts, but everything else is coded internally with the number of charts per coder varying greatly. Unfortunately, the discharged not final billed (DNFB)amount is climbing at an alarming rate. In an effort to reduce the DNFB, you determine that coding productivity standards must be implemented. You benchmark against three...

  • QUESTION 11 10 points (Extra Credit) Match the following items: a setting which provides health care...

    QUESTION 11 10 points (Extra Credit) Match the following items: a setting which provides health care services that does not Stand alone facility Freed-standing facility Ambulatory outpatient facility require an overnight confinement b Hospitals, Nursing Homes, Tertiary care settings C. setting that provides health care services and is physically located independently of an Integrated Delivery System's main campus but may alsobe a part of said medical system necessarily part of an Integrated Delivery System Delivery Systems d setting that provides...

  • 2-B2 Cost-Volume-Profit at a Day Care Facility Luke Morrison opened Luke's Corner, a small day care...

    2-B2 Cost-Volume-Profit at a Day Care Facility Luke Morrison opened Luke's Corner, a small day care facility, just over 2 years ago. After a rocky start, Luke's Corner has been thriving. Morrison is now preparing a budget for November 20X7. Monthly fixed costs for Luke's Corner are as follows: Rent Salaries Other fixed costs Total fixed costs $ 800 1,400 140 $ 2,340 The salary is for Anna Dukes, the only employee, who works with Morrison by caring for the...

  • 2-B2 Cost-Volume-Profit at a Day Care Facility Luke Morrison opened Luke's Corner, a small day care...

    2-B2 Cost-Volume-Profit at a Day Care Facility Luke Morrison opened Luke's Corner, a small day care facility, just over 2 years ago. After a rocky start, Luke's Corner has been thriving. Morrison is now preparing a budget for November 20X7. Monthly fixed costs for Luke's Corner are as follows: Rent Salaries Other fixed costs Total fixed costs $ 800 1,400 140 $ 2,340 The salary is for Anna Dukes, the only employee, who works with Morrison by caring for the...

  • it is problem 5.9 I need help in variable cost rate of capitation payment of tes...

    it is problem 5.9 I need help in variable cost rate of capitation payment of tes that the population $100,000? 5.9 Grandview Clinic has fixed costs of $2 million and an average variable $15 per visit. Its sole payer, an HMO, has proposed an annual capitation $150 for each of its 20,000 members. Past experience indicates that the served will average two visits per year. a. Construct the base case projected P&L statement on the contract. b. Sketch two CVP...

  • $600 C. 4,000 400 Fill in the missing data indicated by question marks. Assume that a...

    $600 C. 4,000 400 Fill in the missing data indicated by question marks. Assume that a radiology group practice has the following cost structure: 5.6 $500,000 Fixed costs Variable cost per procedure 25 Charge (revenue) per procedure 100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Construct the group's base case projected P&L statement. b. What is the group's contribution margin? What is its breakeven point (in num- ber of procedures)? What volume is...

  • this is from the Middletown General Hospital Emergency Department Observation Unit Analysis Exercise...

    this is from the Middletown General Hospital Emergency Department Observation Unit Analysis Exercise Middletown General Hospital ER Observation Unit 1. Questions: What was the average census of observation patients in the hospital? b. Using the 2011 patient flows, how large should the ED observation unit be to achieve a а. target utilization of 80% What was the profit flow in $/day from patients who entered the hospital (on either observation or admitted status) through the ED? d. Assume that an...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT