Bluegrass Community Hospital (BCH) has the following payer groups: Number of AdmissionsAverage Revenue per AdmissionVariable Cost per AdmissionCommercial1,000$5,000$3,000BCBS4,000$4,500$4,000Medicare8,000$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?

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Answered: Bluegrass Community Hospital (BCH) has…

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Chapter12: Balanced Scorecard And Other Performance Measures

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Problem 4PA: Jefferson Memorial Hospital is an investment center as a division of Hospitals United. During the...

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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?

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