Assignment 2 Summer

For this weeks assignment, please make sure you are reviewing and understand the example given at the end of chapter 9. You need to understand the terminology to accurately complete this assignment.

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 average billed charges per visit of $4,500.

Determine the amount of gross revenue, contractual deductions, net patient revenue, total costs and net operating income that would result for both Medicare and Medicaid.


Payor Class   Number Pt. visits Payment /case Gross Revenue Contractual Deductions Net Pt Revenue Total Costs   Net Operat. Income

Medicare           350                             $2,050

Medicaid           200                             $1,650


Please show all of your calculations and include  the appropriate heading.

This assignment is due on Wednesday by 11:50PM.

To get you started on this assignment – To determine the gross revenue (charges) you would multiply the volume by the average billed charges.


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