Evaluating Financial Statements

Evaluating Financial Statements

Answer 1

In the table below we can see the proportion of patients by using the percentage of cases given paying through given payment modes.

 

Proportion of cases in %

Proportion of cases in numbers

Commercial insurances

40 %

800

Medicare insurance

25 %

500

Medicaid insurance

15 %

300

Liability insurance

15 %

300

All others including self-pay

5 %

100

 

 

2000



Answer 2

In the table below all the values are calculated by keeping rate of Medicare insurance $ 6200 as the baseline value.

 

Rate in $

Rate in %

Commercial insurances

6820

110 %

Medicare insurance

6200

Baseline

Medicaid insurance

4030

65 %

Liability insurance

12400

200 %

All others including self-pay

6200

100 %

Individual reimbursement rates

35650

 

Individual reimbursement rates for all 5 payers = $ 35650 * 5

= $ 178250

Answer 3

Payment Modes

Proportion of cases in %

Proportion of cases in numbers

Expected Revenue

Commercial insurances

40 %

800

28520000

Medicare insurance

25 %

500

17825000

Medicaid insurance

15 %

300

10695000

Liability insurance

15 %

300

10695000

All others including self-pay

5 %

100

3565000

 

 

2000

71300000

Out of the total expected revenue all others including self-pay are not included in the account receivable rests are included in it. So the total dollar value of expected rates of reimbursement for this time frame from all the payers is $ 3565000 and the expected rate of reimbursement per payer is $ 1782.5. Overall expected Account Receivable (1) on the other hand is $ 67735000.

Answer 4

The assumed rate for each case below is $2500. This will be charged as service charges for all the patients served in the current year.

Charge rate assumed (Per payer) = $ 2500

Charge rate (All payer) = $ 2500 * 2000

= $ 5000000

Total Account Receivable (2) = $ 67735000 + $ 5000000

= $ 72735000

Answer 5

The account receivable (2) is part of the proration. Proration is basically a part of the charges which are not inclusive in the insured part. Through this procedure of proration, these charges are actually identified. These are receivables which are paid prior to the discharge (Petaschnick, 2012).

It is expected that both account receivables will ...