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QUESTION 1 10 points Save Next year, Grandview Healthcare will serve 100 patients in the following manner: 15 Medicare patients who pay $2,000 per diagnosis 25 Medicaid patients who pay $1,800 per diagnosis 20 managed care patients who pay charges minus a 20% discount 10 managed care patients who pay charges minus a 25% discount 10 private insurance patients who pay charges 10 bad debt patients who pay nothing 10 charity care patients who pay nothing Next year, Grandview's costs will be $2,000 per patient. To construct the baseline scenario, assume that the charge per paying patient is equal to per-patient costs. 1. Go to the sheet entitled "Baseline". In that sheet, you will find the counts of each type of patient already entered in column B. Enter the parameters given above in the appropriate cells in the "Parameters" section of the sheet. Complete the baseline scenario by constructing formulas that use the patient counts and the relevant items in the "Parameters" section to fill in column C (Costs), column D (Collections), and column E (Profit). 2. What is the profit or loss? QUESTION 2 5 points Save Answer 1. You should have found that baseline scenario leads to loss. 2. Solve for the charge that would balance the budget and type it below: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph Arial 10pt :v = TE 40 9 Q .. s X2 X2 & & T I. ABC +] V V 59 MTI E # EX +H E ;} {: K + QUESTION 3 5 points Save Answ 1. Creating a new sheet. Copy the baseline budget and "Parameters" section into it. This should copy those sections over while preserving the formulas that you entered to complete part (a). Replace the initial charge with the budget-balancing charge that you solved for in part (c). You should find that the organization has zero profit (.e. breaks even) with this new charge. 2. Assume that those payers that pay charges, or charges minus a discount, limit Grandview's charges to $2,100 per patient. You will need to determine the amount of costs that Grandview will need to cut, or cover with additional revenues to break even (i.e realize no profit or loss). To complete this task, create a new sheet and copy the budget sheet that you developed for part (d) over so that the formulas will remain usable. Replace the charge with $2,100. Compute the budget-balancing cost per patient in the "Parameters" section that your budget will show zero profit. 3. Type the budget-balancing cost per-patient below: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial V V 10pt :- TE % AQ - X X2 > 1 t FAC T 77 X HE H HEX E B # } o ? + B C D E G Number of Patients in Class 15 Costs Collections Profit 25 nancial Class Medicare Medicaid Managed Care 1 Managed Care 2 Private Bad Debt Charity 20 10 10 10 10 Parameters Cost Per Patient Charge Per Diagnosis for Medicare Patient Charge Per Diagnosis for Medicaid Patient Charge for all other paying patients 5 Managed Care 1 Charge Share Net of Discount 7 Managed Care 1 Charge Share Net of Discount -8 19 Solving for the Budget-Balancing Charge 20 Absolute Value of initial Loss 21 Budget-Balancing Charge 22 23 24 25 QUESTION 1 10 points Save Next year, Grandview Healthcare will serve 100 patients in the following manner: 15 Medicare patients who pay $2,000 per diagnosis 25 Medicaid patients who pay $1,800 per diagnosis 20 managed care patients who pay charges minus a 20% discount 10 managed care patients who pay charges minus a 25% discount 10 private insurance patients who pay charges 10 bad debt patients who pay nothing 10 charity care patients who pay nothing Next year, Grandview's costs will be $2,000 per patient. To construct the baseline scenario, assume that the charge per paying patient is equal to per-patient costs. 1. Go to the sheet entitled "Baseline". In that sheet, you will find the counts of each type of patient already entered in column B. Enter the parameters given above in the appropriate cells in the "Parameters" section of the sheet. Complete the baseline scenario by constructing formulas that use the patient counts and the relevant items in the "Parameters" section to fill in column C (Costs), column D (Collections), and column E (Profit). 2. What is the profit or loss? QUESTION 2 5 points Save Answer 1. You should have found that baseline scenario leads to loss. 2. Solve for the charge that would balance the budget and type it below: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph Arial 10pt :v = TE 40 9 Q .. s X2 X2 & & T I. ABC +] V V 59 MTI E # EX +H E ;} {: K + QUESTION 3 5 points Save Answ 1. Creating a new sheet. Copy the baseline budget and "Parameters" section into it. This should copy those sections over while preserving the formulas that you entered to complete part (a). Replace the initial charge with the budget-balancing charge that you solved for in part (c). You should find that the organization has zero profit (.e. breaks even) with this new charge. 2. Assume that those payers that pay charges, or charges minus a discount, limit Grandview's charges to $2,100 per patient. You will need to determine the amount of costs that Grandview will need to cut, or cover with additional revenues to break even (i.e realize no profit or loss). To complete this task, create a new sheet and copy the budget sheet that you developed for part (d) over so that the formulas will remain usable. Replace the charge with $2,100. Compute the budget-balancing cost per patient in the "Parameters" section that your budget will show zero profit. 3. Type the budget-balancing cost per-patient below: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial V V 10pt :- TE % AQ - X X2 > 1 t FAC T 77 X HE H HEX E B # } o ? + B C D E G Number of Patients in Class 15 Costs Collections Profit 25 nancial Class Medicare Medicaid Managed Care 1 Managed Care 2 Private Bad Debt Charity 20 10 10 10 10 Parameters Cost Per Patient Charge Per Diagnosis for Medicare Patient Charge Per Diagnosis for Medicaid Patient Charge for all other paying patients 5 Managed Care 1 Charge Share Net of Discount 7 Managed Care 1 Charge Share Net of Discount -8 19 Solving for the Budget-Balancing Charge 20 Absolute Value of initial Loss 21 Budget-Balancing Charge 22 23 24 25

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