Your hospital has been approached by a major HMO to perform all their MSDRG 505...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Your hospital has been approached by a major HMO to perform all their MSDRG 505 cases (foot surgeries). They have offered a flat payment of $8,000 per case. You have reviewed your charges for MSDRG 505 during the last year and found the following profile:
Estimate the total variable cost (i.e., including both routine and ancillary) per MSDRG 505 using the departmental cost/charge ratios and variable cost percentages. PLEASE show how you have achieved your answer. Thanks!
Average charge: $11,300 Average LOS: 4.5 Days Cost/Charge 0.75 0.70 0.70 0.65 Routine charge Operating room Anesthesiology Lab Radiology Medical supplies Pharmacy Other ancillary Total ancillary $3,200 1,850 210 575 275 3,220 955 1,015 $8,100 Variable Cost % 65 80 75 40 50 85 85 55 75 0.65 0.60 0.55 0.75 0.70 Average charge: $11,300 Average LOS: 4.5 Days Cost/Charge 0.75 0.70 0.70 0.65 Routine charge Operating room Anesthesiology Lab Radiology Medical supplies Pharmacy Other ancillary Total ancillary $3,200 1,850 210 575 275 3,220 955 1,015 $8,100 Variable Cost % 65 80 75 40 50 85 85 55 75 0.65 0.60 0.55 0.75 0.70
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
