REMINDER PLEASE: Instructor don’t want a paper that is difficult to follow, they wanted more of the students own wordings, and most of all they wanted students to get information if possible not from...

REMINDER PLEASE:

Instructor don’t want a paper that is difficult to follow, they wanted more of the students own wordings, and most of all they wanted students to get information if possible not from other sites but only from the library (AIU). Instructor needed that a student has a good understanding of the concepts that is being discussed. If possible not too many cited information, the instructor wanted more of own wording, synthesis, and analysis of the information being provided. It need to be Scholarly Research, less bullets.

HEALTHCARE FINANCE – HEALTH 420

Assignment Objectives

Achieve exercises such as income sensitivity and breakeven analyses for providers with diverse payer mixes.

Analyze and compare capital investment opportunities based on an understanding of the basics of capital budgeting and capital structure decisions.

Assess the major reimbursement sources, such as Medicare, Medicaid, and commercial insurance that affect all providers.

Differentiate the various reimbursement methods, including prospective payment systems, cost reimbursement systems, discounted charges systems, flat-rate reimbursement systems, and capitation contracts.

Evaluate healthcare relationships expressed in financial and economic terms.

You will create this assignment following the Assignment Detail instructions below. BELOW IS MY ASSIGNMENT IT IS ONLY ABOUT CALCULATING I THINK
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Assignment Details

Assignment Details -This is a 5 part deliverable

PART 1

Your facility has 2000 cases in the following payer mix:

• 40% commercial insurances


• 25% Medicare insurance


• 15% Medicaid insurance


• 15% liability insurance


• 5% all others, including self-pay

What are the proportions of the total cases for each payer?

PART 2

The average Medicare rate for each case is $6,200. Use this as the baseline. Commercial insurances average 110% of Medicare, Medicaid averages 65% of Medicare., Lliability insurers average 200% of Medicare, and the others average 100% of Medicare rates.

1. Calculate the individual reimbursement rates for all 5 payers?


2. What is your expected Accounts Receivable?

PART 3

Which of the following costs are fixed, which are variable, and which are direct or indirect:

• Materials/supplies (gowns, drapes, bedsheets)


• Wages (nurses, technicians)


• Utility, building, usage exp (lights, heat, technology)


• Medications


• Licensing of facility


• Per diem staff


• Insurances (malpractice, business, and so on)

PART 4
Given the following costs per case:

• Materials/supplies: $2,270


• Wages: $2,000


• Utility, building, usage exp: $1,125


• Insurances (malpractice, business, and so on): $175

What is the total cost of all combined cases?
PART 5
Calculate the difference between accounts receivable (A/R) and accounts payable (A/P)

Your assignment will be graded in accordance with the following criteria: Clickhereto view the grading rubric.