Your Answer Question:The number of X-rays and X-ray costs over the last nine months in Beverly Hospital are givenbelow:X-Ray Costs X-Rays TakenMonthJanuary$28,0006,250February29,0007,000March23,0005,000April20,0004,250May22,0004,500June17,0003,000July18,0003,750August 24,0005,500September 26,0005,750Beverly Hospital expects to take 4,700 X-rays during October. Using the high-low method,calculate Beverly Hospital's expected X-ray cost for October. Do not use decimals in your answer.

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 18E

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Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost What would be…
How to solve 4.5 parts a through d?
Using the information below from Verdi Diagnostic Services, what is the formula for the total costs of X-rays? March April May X-Rays Taken X-ray Costs $13,500 $10,000 $7,500 7,000 5,000 3,000 O Total cost = $13,500+ ($0.57 x number of X-rays) B U O Total cost $1.75 + ($1,250x number of X-rays) O Total cost = $3,000 + ($1.50x number of X-rays) O Total cost = $2,000+ ($2.00 x number of X-rays)
Assume that the agreed-upon price is $90,000. What is the expected profiton the contract assuming that it brings in 20 new patients? (Assume fornow that no new fixed costs would be required.)
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?
Using 0 & 3,000 patient-days, variable cost per patient-day would be: a.$5.00 b.$10.00 c.$6.67 d.$7.17
Now assume that the additional patients will add $200,000 in total to theCenter’s fixed costs. Now what is the expected profit on 20 new patients?On 40 new patients? (No new fixed costs are required to support the secondgroup of 20 patients.)
Problem 1c: Consider the following information for Rosebud Lane Hospital. The number of admissions for the year are expected to equal 1000, but could vary from 750 to 1250. Rosebud's fee-for-service is $2,000 under a prospective payment system. Under a capitation reimbursement system, Rosebud must cover 1000 patients at a capitation payment of $2,000. Rosebud's annual fixed costs are $500,000 and it variable cost per admission is $1,500. 1c. Calculate Rosebud's net profit under the Fee For Service Reimbursement method if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.) 1d. Calculate Rosebud's net profit under Capitation if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.)
5.4General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day 200 Charge (revenue) per inpatient day 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a.Construct the hospital’s base case projected P&L statement. b.What is the hospital’s breakeven point? c.What volume is required to provide a profit of $1,000,000? A profit of $500,000? d.Now assume that 20 percent of the hospital’s inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?
7.5. Bay Pines Medical Center estimates that a capitated population of 50,000 would have the following base case utilization and total cost characteristics: Service Category Inpatient Days per 1,000 Enrollees Average Cost per Day General 150 $1,500 Surgical 125 1,800 Psychiatric 70 700 Alcohol/drug abuse 38 500 Maternity 42 1,500 Total 425 $1.367 In addition to medical costs, Bay Pines allocates 10 percent of the total premium (total capitated revenue) for administration/ reserves. a. What is the PMPM rate that Bay Pines must set to cover medical costs plus administrative expenses? b. What would be the rate if a utilization management program were to reduce utilization within each patient service category by 10 percent? By 20 percent? c. Return to the initial base case utilization assumption. What rate would be set if the average cost on each service were reduced by 10 percent? d. Assume that both utilization and cost reductions were made. What would the premium be
In the cost formula, the term 12,000 a. is the variable rate. b. is the dependent variable. c. is the independent variable. d. is the intercept. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
Please give me answer Accounting

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