Assignment Details Your facility has the following payer mix:40% commercial insurances 25% Medicare insurance 15% Medicaidinsurance 15% liability insurance 5% all others, including self-payWrite a 3–4-page report that addresses the following requirements:Assume that for the time in question, you have 2,000 cases in theproportions above. What are the proportions of the total cases foreach payer? The average Medicare rate for each case is $6,200. Usethis as the baseline. Commercial insurances average 110% ofMedicare, Medicaid averages 65% of Medicare, liability insurersaverage 200% of Medicare, and the others average 100% of Medicarerates. What are the individual reimbursement rates for all 5payers? What are the expected rates of reimbursement for this timeframe for each payer? What is your expected A/R? What rate shouldyou charge for these services (assuming one charge rate for allpayers)? (This gives you your total A/R.) Calculate the totalcharges for all cases based on this rate. What is the differencebetween the two A/R rates above? Can you collect it from thepatient? What happens to the difference? Which of the followingcosts are fixed, which are variable, and which are direct orindirect: Materials/supplies (gowns, drapes, bedsheets) Wages(nurses, technicians) Utility, building, usage exp (lights, heat,technology) Medications Licensing of facility Per diem staffInsurances (malpractice, business, and so on) Calculate thecontribution margin for one case (in $) with the following costsfor this period, per case Materials/supplies: $2,270 Wages: $2,000Utility, building, usage exp: $1,125 Insurances (malpractice,business, and so on): $175 Using the above information, determinewhich is fixed and which cost is variable. Then, calculate thebreakeven volume of cases in units for this period. Suppose youwant to make $150,000 profit between this period and next period tofund an expansion to the NICU. How many cases would you have tosee? At what payer mix would this be optimal?
