Analyzing Bay Pines Medical Center’s Financial Statement

Get perfect grades by consistently using www.custompaperwriting.org. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

After gaining an understanding of
the components of a financial statement, analyzing and applying what the
components represent, in terms of future planning, are the most important
aspects of working in healthcare finance. Consider the following data and make
your best analysis of per member per month (PMPM) rates, considering reductions
in utilization or pricing.

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 for administration/reserves.

Tasks:

On the basis of your data analysis,
respond to the following:

  • What is the PMPM rate that Bay Pines must set to cover
    medical costs plus administrative expenses?
  • What would be the rate if a utilization management
    program were to reduce utilization within each patient service category by
    10 percent? And by 20 percent?
  • Consider the initial base case utilization assumption.
    What rate would be set if the average cost on each service were reduced by
    10 percent?
  • Assume that both utilization and cost reductions were
    made. What would the premium be?

Submission Details:

  • Present your analysis as a 3-page report in a Microsoft
    Word document formatted in APA style.
  • On a separate page, cite all sources using APA format.

Assignment 2 Grading Criteria

Maximum
Points

Calculated the PMPM rate to cover
medical and administrative costs.

40

Calculated utilization rates
reduced by 10 percent.

36

Calculated utilization rates
reduced by 20 percent.

36

Calculated the rate with the
average service cost reduced by 10 percent.

40

Calculated the PMPM premium after
utilization and cost reductions.

40

Wrote in a clear, concise, and
organized manner; demonstrated ethical scholarship in accurate representation
and APA style attribution of sources; displayed accurate spelling, grammar,
and punctuation.

8

Total:

200

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an excellent paper from our writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper