HSMB 306 Operating Indicator Analysis

This problem

VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate (PMPM) is determined by estimating the health care cost per enrollee within a geographic location. The average health care coverage in North Carolina costs $376 per month, which is the same amount irrespective of the subscriber’s age. Because individuals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $333. VIP-MD wants to maintain its current market penetration and hopes to increase its enrollees in the current year. The latest data on the number of enrollees and the associated costs follow:   Age Enrollment in…

1. The Dental Services department of Our Town Community Health Center provides 3 services: Routine examinations, cleanings, and fillings. The fully allocated costs in 2020 for the Dental Services Department were $600,000. Information on the services performed in 2020 are listed in the table below. Total Charges Billed 300,000 187,500 210,000 Service #Procedures Total Revenues 2,000 1,500 700 $260,000 $170,000 $210,000 Exams Cleanings Fillings A) Using the Cost to Charge Ratio Method using charges, what is the cost incurred during 2020 for the Dental Services Department to perform exams, cleanings, and fillings (in aggregate)? B) What is the average cost per exam, per deaning, and per filling? 2) The Dental Services Department Manager just found out about another way to estimate their service costs: the RVU Method. Exams have an RVU of 1 Cleanings have an RVU of 0.75 Fillings have an RVU of 3 A) How many RVUs did the Dental Services Department produce in 20207? B) What is the cost per…

Bluegrass Community Hospital (BCH) has the following payer groups:     Number of Admissions Average Revenue per Admission Variable Cost per Admission Commercial 1,000 $5,000 $3,000 BCBS 4,000 $4,500 $4,000 Medicare 8,000 $7,000 $2,500   Given: BCH annual fixed costs are $38M   What is BCH’s net income? If half of the 100,000 covered lives in the Commercial group moved to a capitated rate and utilization and cost data remained the same, what PMPM rate should be charged to maintain the Commercial group net income share? What would BCH net income be if the Commercial capitated group admissions decreased by 10%? What would BCH net income be if the Commercial capitated group admissions decreased by 10% and variable costs for the Commercial capitated group decreased to $2,200?

P1.2. Alice Hospital provides you with the following information that relates to its operating results for the year ended December 31, 20X1: Nursing services expenses $3,900 Deductions from patient services revenues 1,200 Other professional services revenues 4,800 General services expenses 1,700 Nonoperating income 140 Fiscal and administrative services expenses 1,200 Daily patient services revenues 6,320 Other professional services expenses 2,610 Other operating revenues 450 Required: Prepare, in good form, a statement of operations for Alice Hospital for the year ended December 31, 20X1.

A healthcare provider offers a single service to its patients, and the patients are covered by only two different third parties. Payer 1, Medicare, represents 50% of the patients and pays a fixed fee of $325 per patient. Payer 2, a Commercial Insurer, represents 45% of the patients and pays 80% of the provider's gross charge. The remaining patients are Charity Care patients who do not pay for their services. The provider treats 3,200 patients per month. The fixed costs of the provider each month is $87,000, and their variable cost per patient is $330. The provider desires to set its gross charge per patient to achieve a profit, or net income, of $97,000 for the month. a. Set up an Algebraic expression, with "p" being the gross charge (price) of the service to each patient being seen in the month, to solve this problem. Show this expression on your spreadsheet. b. Solve the problem finding the Gross Price to be charged to achieve the profit target. c. How many charity patients does the…

Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clin-ics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 23,500 hours next year. Health-Temp charges the hospitals and clinics $90per hour and has variable costs of $75.60 per hour (this includes the payment to the nurse). Totalfixed costs equal $321,000.Required:1. Calculate the contribution margin per unit and the contribution margin ratio.2. Calculate the sales revenue needed to break even.3. Calculate the sales revenue needed to achieve a target profit of $100,000.4. What if Health-Temp had target operating income (profit) of $110,000? Would sales revenuebe larger or smaller than the one calculated in Requirement 3? Why? By how much?

Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for 2022: HEALTH CARE PRODUCTS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 1,200 770 $ 430 COSMETICS DIVISION Income Statement For the Year Ended December 31, 2022 Revenues Operating costs Operating income $ 960 460 $ 500 Ready estimates the useful life of each manufacturing facility to be 21 years. As of the end of 2022, the plant for the health care division is 4 years old, while the manufacturing plant for the cosmetics division is 6 years old. Each plant had the same cost at the time of purchase, and both have useful lives of 21 years with no salvage value. The company uses straight-line depreciation and the depreciation charge is $70,000 per year for each division. The manufacturing facility is the only long-lived asset of either division. Current assets are $312,000 in each…

Indi Services Corporation, headquartered in Bengaluru, India, provides specialized information technology (IT) services and consists of three divisions: (1) financial services, (2) health services, and (3) transportation services. For 2019, it recorded the following data: Sales revenues Variable costs (% of sales) Traceable fixed costs Financial Services $3,931,000 2,136,000 27% Health Services $5,269,000 2,697,000 39% Transportation Services $1,952,000 721,400 Total $11,152,000 44% Common fixed costs 5,554,400 1,180,000 Required: 1. Prepare a segment performance report showing the segment margin in dollars and percentages for all three divisions. Use Exhibit 12-3 as a guide. (Round "Percentage" answers to 2 decimal places.) INDI SERVICES CORPORATION Segment Performance Report Profit Centres Financial Services Health Services Transportation Services Total Company % % %

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Sunrise healthcare center has a contact

Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $62.90 per patient-visit. Personnel expenses should be $36,400 per month plus $16.50 per patient-visit. Medical supplies should be $2,700 per month plus $11.90 per patient-visit. Occupancy expenses should be $9,100 per month plus $5.50 per patient-visit. Administrative expenses should be $4,600 per month plus $3.60 per patient-visit. The clinic reported the following actual results for November: Patient-visits Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Required: 2,870 $ 199,240 $ 89,320 $ 40,240 $ 19,350 $ 9,750 Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts…

Assume that Valley Forge Hospital has only the following three payer groups: Number of Average Revenue Variable Cost Admissions per Admission per Admission Commercial 1,000 $5,000 $3,000 PennCare 4,000 4,500 4,000 Medicare 8,000 7,000 2,500 The hospital's fixed costs are $38 million. a. What is the hospital's net income? b. Assume that half of the 100,000 covered lives in the commercial payer group will be moved into a capitated plan. All utilization and cost data remain the same. What PMPM rate will the hospital have to charge to retain its Part a net income? c. What overall net income would be produced if the admission rate of the capitated group were reduced from the commercial level by 10 percent? d. Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200?

Calculate FTE/AOB for the following results: If last year ratio was 4.82 – How does this year’s data compare? Inpatient Revenue $175,314,276 Inpatient Days 25,200 Outpatient Revenue $123,009,100 Productive labor hours 922,332    ( well explain all point of question and type the answer).

Hi, Could you please help me fill in the missing values and show how you came to the calculation. Thank you.

Assume that Valley Forge Hospital has only the following three payer groups: Number of Average Revenue Payer Cost Admissions Admission PennCare $3,000 Medicare $4,000 Commercial $2,500 1,000 4,000 8,000 per Admission $5,000 $4,500 $7,000 Variable per The hospital's fixed costs are $38 million. c. What overall net income would be produced if the admission rate of the capitated group (from part B above) were reduced from the commercial level (originally listed as $2,500 total from above) by 10 percent? d. For this same capitated group, assuming that utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for this same capitated group were lowered to $2,200 (from the original $2,500 listed above)?

Seal Financial Advisors provides accounting and finance assistance to customers in the retail business. Seal has four professionals on staff and an office with six clerical staff. Total​ compensation, including​ benefits, for the professional staff runs about​ $573,000 per​ year, and normal billable hours are​ 8,300 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are​ $755,000. Seal allocates office and administrative costs to clients​ monthly, using a predetermined overhead allocation rate based on billable hours. What is the predetermined overhead allocation rate that Seal will use for office and administrative​ costs? (Round your answer to the nearest​ cent.)   A. ​$69.04 per hour   B. ​$21.93 per hour   C. ​$160.00 per hour   D. ​$90.96 per hour

An assisted living has actual total revenues of 1.68 million, expenses of 1 million in 2018. The budgeted revenue was 1.7 million and the budgeted expenses were 900,000.  What is the net income for 2018? What is the revenue variance (in dollars or percentage) for 2018? What is the total margin for 2018?

Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Home Total Nursing $ 929,000 $ 270,000 471,000 112,000 458,000 158,000 69,800 44,000 8,900 20,800 115,800 40,800 185,800 54,000 415,400 124,500 $ 42,600 $ 33,500 Required 1A Required 1B *Allocated on basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization.…

So this is a two part question and while I understand percentage method to a point, I'm confused on how to apply the second part.

Gibco Service has budgeted the following time-and-material for 2019:   Budgeted Costs For 2019   Time Material     Charges Charges   Painters' wages and benefits $54,000       Service manager's salary and benefits   $44,000     Office employee's salary and benefits 7,400 6,000     Cost of paint   50,000     Overhead (supplies, utilities, etc.) 14,000 22,000               Gibco budgets 2,000 hours of paint time in 2019 and will charge a profit of $8 per hour on the labour rate, in addition to a 12% mark-up on the cost of paint.   On February 15, 2019, Gibco is asked to prepare a price estimate to paint a building. Gibco estimates that this job will take 25 labour hours and $900 in paint.   1.Calculate the material loading charge rate % for 2019 2. What is the planned profit for the  year? Do not enter $ or commas.

The consulting firm Sheridan Financial employs 48 full-time staff. The estimated compensation per employee is $107,300 for 1,850 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates them based on labour hours. Actual indirect costs were $854,200. Estimated indirect costs for the coming year are $1,510,000. The firm expects to have 78 clients in the coming year. (a) Your answer is incorrect. Determine the overhead rate per direct labour hour. (Round anwer to 2 decimal places, e.g. 2.25.) Overhead rate per direct labour hour $

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance. Program administrators' salaries. General administrative overhead* Total fixed expenses Net operating income (loss) Total $ 923,000 474,000 449,000 69,300 43,100 114,100 184, 600 411,100 $ 37,900 Req 1A Home Nursing $ 265,000 119,000 146,000 Req 1B 8,200 20,600 40,300 53,000 122, 100 $ 23,900 *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $37,900 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. Req 2A The…

Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Meals on Wheels $ 408,000 Total $925,000 Home Nursing $ 264,000 473,000 117,000 452,000 147,000 203,000 205,000 Housekeeping $ 253,000 153,000 100,000 69,700 9,000 40,300 20,400 43,700 20,300 8,000 15,400 115,400 40,500 38,300 36,600 185,000 52,800 81,600 50,600 413,800 122,600 168,200 123,000 $ 38,200 $ 24,400 $ 36,800 $ (23,000) The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van used to…

Compute and record workers' compensation insurance premiums for Fairlawn Manufacturing as follows: 1. The firm estimates that its office employees will earn $57,000 next year and its factory employees will earn $184,000. The firm pays the following rates for workers' compensation insurance: $0.50 per $100 of wages for the office employees and $4.00 per $100 of wages for the factory employees. Compute the estimated premiums for 20X1. In the general journal, record the payment of the estimated premium. Date the entry as January 12, 20X1. 2. On January 3, 20X2, an audit of the firm's payroll records for 20X1 showed that the firm had actually paid wages of $59,000 to its office employees and $187,000 to its factory employees. Compute the actual premium for the year and the balance due to the insurance company or the credit due to the firm. In the general journal, record the entry to adjust the Workers' Compensation Insurance Expense as of the end of 20X1. Date the entry December 31, 20X.…

Compute the total revenue

Roi and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2019: Indirect costs Annual salary of each attorney Annual salary of each paraprofessional Total professional labor-hours Budget Actual $270,000 $300,000 $100,000 $110,000 $29,000 $30,000 50000 60,000 DLH DLH How much should the client be billed in an actual costing system if 200 professional labor-hours are used? Example of Answer: 4000 (No comma, space, decimal point, or $ sign)