Penn Medical Center, a for-profit hospital, is considering the purchase of a new 64-slice CT scanner. The cost of the new scanner is $5 million and will be depreciated over 10 years on a straight line basis to $0 savage value. The tax rate is 40%. The financing options include either borrowing the full cost of the scanner or leasing a scanner. The lease option is a 5-year lease with equal before-tax lease payments of $950,000 per year.
What is the breakeven point? Contribution margin: $75X7500=$562,500 which is sufficient to cover the clinics fixed costs of $500,000 and provide a (562,500-500,000)=$62,500 profit. Breakeven point: net income(profit)=revenue-fixed costs-var costs
In a spend-down program, individuals are required to spend a portion of their income or resources on health care until they reach or drop below the income level specified by the state. The concept is similar to an annual deductible, except that it resets at the beginning of every month. Each month, the enrollee pays a portion of incurred medical bills, up to a certain amount, before the Medicaid fee schedule takes effect and Medicaid takes over payments. For example, a patient who has a $100 spend-down visits the physician on March 3 and is billed $75. The patient is responsible for paying the entire $75.
How does this value compare with the values for Sunnyvale Clinic and BestCare? The before-tax profit margin for Green Valley is operating income divided by total revenues. Calculate Green Valley's before-tax profit margin. Why may this be a better measure of expense control when comparing an investor-owned business with a not-for-profit business? 3.4 Great Forks Hospital reported net income for 2007 of $2.4 million on total revenues of $30 million.
(0.5 points) When you have paid the deductible amount and the insurance company has to pay some/ the rest of the costs above that amount. 4. What does health insurance help to pay for? (0.5 points) Health insurance helps pay for doctors , dentists , eye doctors, etc. 5.
CMS uses separate PPSs for reimbursement to acute inpatient hospitals, home health agencies, hospice, hospital outpatient, inpatient psychiatric facilities, inpatient rehabilitation facilities, long-term care hospitals, and skilled nursing facilities. (CMS.gov, 2013) The CMS requires Medicaid programs to make payments for FQHC/RHC services in an amount calculated on a per-visit basis that is equal to the reasonable cost of such services documented for a baseline period, with certain adjustments, or to use an alternative payment methodology to pay for FQHC and RHC services. CMS.GOV, Nov. 2013,http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/ProspMedicareFeeSvcPmtGen/index.html How do CPT, ICD, and HCPCS codes differ? International Classification of Diseases (ICD-9) coding is a statistical classification system that arranges diseases and injuries into groups according to established criteria, by the world health Organization. Majority of ICD-9 codes are numeric and consist of three, four or five numbers and a description.
What is meeting the deductible? (0.5 points) Meeting the deductible is when you have paid the deductible amount and the insurance company now has some to pay or all of the rest of costs above that amount. 4. What does health insurance help to pay for? (0.5 points) Health insurance helps pays for your medical bills and expenses.
This part carries a deductible and a monthly premium. Part B is also voluntary enrollment. • Part C – also known as Medicare Advantage Plans work with HMO and PPO to provide a custom plan for patients to receive accurate care with specific needs. • Part D – requires a premium and a deductible. This part works with private insurance companies.
The Complexities of Physician Supply and Demand: Projections Through 2025. American Association of Medical colleges, 2008. * For purposes of this survey, low-income communities are defined as those in which at least 50 percent of patients belong to a household with an annual income of less than $50,000. ** This number was calculated by dividing the average number of prescriptions physicians would write for social services if able (26) by the sum of the average number of prescriptions physicians currently write (or medications they dispense) in a week (150) and the average number physicians would write if able (26). 9 robert wood johnson
Price will be around $20-$40 which should be considerably lesser than OraSure’s products which are claimed to have more false positives. Also, OraSure had gained negative publicity through CDC’s recommendation which might influence FDA decision. In that case Medmira holds a good chance of pioneering the market as this is the first company receiving the Health Canada’s approval and also the CE Mark Approval. The OTC sales in Hongkong and China has been quite good and FDA approval gives a good chance for the market expansion. Financial implications: As the market looks convincing enough and given that Medmira wouldn’t want to lose a potential opportunity, the cost of obtaining FDA approval for OTC would be: * Filing cost: 1.5 million dollars * Packaging and