Good Will General Hospital is introducing a new service that anticipates to have 550 patient visitsper 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 for both Medicare and Medicaid that would result given the terms in the table below.
Please show all of your work to receive credit.
Payor Class Number of patient visits Payment per case Gross Revenue Contractual Deductions Net Patient Revenue Total Costs Net Operating Income
Medicare350 $2,050
Medicaid 200 $1,650
due in 8 hours
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