COHE 6310 Health Care Accounting And Financial Administration

Question: Cost-Volume-Profit Analysis Given: A primary care provider group has negotiated to provide medical care to 20,000 beneficiaries. They are paid $25.00 PMPM. Costs experienced follow: Monthly Fixed: $200,000 Variable: $20 What amount of revenue is generated monthly by this capitated contract? (10 points) $200,000 $375,000 $500,000 $625,000 Cost-Volume-Profit Analysis (continue from 1.) What is the breakeven point for monthly service encounters? (10 points) 13,000 14,000 15,000 16,000 Cost-Volume-Profit Analysis (continue from 2.) If beneficiaries in this region average 3 service encounters per year, project the monthly profits for this primary care provider group. (10 points) $150,000 $175,000 $200,000 $300,000 Cost-Volume-Profit Analysis (continue from 3.) In year 2 of the capitated contract, the primary care group has negotiated a PMPM rate of $27.50, but variable costs have increased to $25. Assume the same number of service encounters and project the monthly profits for this primary care provider group. (10 points) $175,000 $200,000 $225,000 $375,000 Consider the spreadsheet excerpt below. Use the Step-Down Method to allocate Laundry costs first (using Pounds of Laundry as the basis for allocation) and then Housekeeping costs second (using Square Feet as the basis for allocation). Direct Pounds of Square Department Cost Laundry Feet Laundry $250,000 5,000 Housekeeping $400,000 50,000 Radiology $600,000 100,000 50,000 Nursing $1,250,000 350,000 150,000 Total $2,500,000 500,000 205,000 Match the Costs and Categories below (4 points each, total of 24 points): Housekeeping (Indirect Costs allocated from Laundry) Housekeeping (Total Costs) Radiology (Indirect Costs allocated from Laundry and Housekeeping) Given the following tables from the spreadsheet templates posted to Blackboard:Match the Tests and their Total Costs. Complete the values in the spreadsheet templates posted in Blackboard and list the total cost of performing each test in the spaces below: $14.00 $16.50 $18.50 $21.50 $26.75 $32.50 $37.00 $51.50 Submit your spreadsheet file (Cost Analysis Assignment (Excel Template) as a file attachment when prompted by Blackboard. Answer: Answers to the project are to be submitted as a project quiz. This is an individual, graded exercise to be completed by the due date. The project quiz will prompt you to submit your spreadsheet file as a file attachment. Rename your file: Your_Name_Cost_Analysis_Project. Cost-Volume-Profit Analysis Given: A primary care provider group has negotiated to provide medical care to 20,000 beneficiaries. They are paid $25.00 PMPM. Costs experienced follow: Monthly Fixed: $200,000 Variable: $20 What amount of revenue is generated monthly by this capitated contract? (10 points) $200,000 $375,000 $500,000 $625,000 Answer: c Cost-Volume-Profit Analysis (continue from 1.) What is the breakeven point for monthly service encounters? (10 points) 13,000 14,000 15,000 16,000 Answer: c Cost-Volume-Profit Analysis (continue from 2.) If beneficiaries in this region average 3 service encounters per year, project the monthly profits for this primary care provider group. (10 points) $150,000 $175,000 $200,000 $300,000 Answer: b Cost-Volume-Profit Analysis (continue from 3.) In year 2 of the capitated contract, the primary care group has negotiated a PMPM rate of $27.50, but variable costs have increased to $25. Assume the same number of service encounters and project the monthly profits for this primary care provider group. (10 points) $175,000 $200,000 $225,000 $375,000 Answer: c 5. Consider the spreadsheet excerpt below. Use the Step-Down Method to allocate Laundry costs first (using Pounds of Laundry as the basis for allocation) and then Housekeeping costs second (using Square Feet as the basis for allocation). Direct Pounds of Square Department Cost Laundry Feet Laundry $250,000 5,000 Housekeeping $400,000 50,000 Radiology $600,000 100,000 50,000 Nursing $1,250,000 350,000 150,000 Total $2,500,000 500,000 205,000 Match the Costs and Categories below (4 points each, total of 24 points): __b___ Housekeeping (Indirect Costs allocated from Laundry) __i___ Housekeeping (Total Costs) ___f__ Radiology (Indirect Costs allocated from Laundry and Housekeeping) __k___ Radiology (Total Costs) ___h__ Nursing (Indirect Costs allocated from Laundry and Housekeeping) ____l_ Nursing (Total Costs) $15,000 $25,000 $40,000 $50,000 $106,250 $156,250 $211,250 $318,750 i $425,000 $493,750 $756,250 $1,743,750 $2,245,500 Activity Based Costing Problem. Given the following tables from the spreadsheet templates posted to Blackboard: Match the Tests and their Total Costs Complete the values in the spreadsheet templates posted in Blackboard and list the total cost of performing each test in the spaces below: ___e__ Test A ___d__ Test B __g___ Test C ___i__ Test D $12.75 $14.00 $16.50 $18.50 $21.50 $26.75 $32.50 $37.00 $51.50 7. Submit your spreadsheet file (Cost Analysis Assignment (Excel Template) as a file attachment when prompted by Blackboard.

COHE 6310 Health Care Accounting And Financial Administration

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