Calculate the difference between accounts receivable (A/R) and accounts payable (A/P)

Calculate the difference between accounts receivable (A/R) and accounts payable (A/P)

Assignment Details – This is a 5 part deliverable

PART 1

Your facility has 2000 cases in the following payer mix:

• 40% commercial insurances
• 25% Medicare insurance
• 15% Medicaid insurance
• 15% liability insurance
• 5% all others, including self-pay

What are the proportions of the total cases for each payer?

PART 2

The average Medicare rate for each case is \$6,200. Use this as the baseline. Commercial insurances average 110% of Medicare, Medicaid averages 65% of Medicare., Lliability insurers average 200% of Medicare, and the others average 100% of Medicare rates.

1. Calculate the individual reimbursement rates for all 5 payers?
2. What is your expected Accounts Receivable?

PART 3

Which of the following costs are fixed, which are variable, and which are direct or indirect:

• Materials/supplies (gowns, drapes, bedsheets)
• Wages (nurses, technicians)
• Utility, building, usage exp (lights, heat, technology)
• Medications
• Licensing of facility
• Per diem staff
• Insurances (malpractice, business, and so on)

PART 4

Given the following costs per case:

• Materials/supplies: \$2,270
• Wages: \$2,000
• Utility, building, usage exp: \$1,125
• Insurances (malpractice, business, and so on): \$175

What is the total cost of all combined cases?

PART 5

Calculate the difference between accounts receivable (A/R) and accounts payable (A/P)