Evaluating Financial Statements

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Running Head: Evaluating Financial StatementsEVALUATING FINANCIAL STATEMENTS
Evaluating Financial Statements21. Computation of the proportion of each payerAmongst the 2000 cases 40% consists of commercial insurances, 25% comprise of Medicare insurance, 15% comprise of Medicaid insurance, 15% belongs to liability insurance and the rest 5% comprise of all others including self-pay. The proportion of each payer considering the total number of cases is as follows -ProportionCommercial insurances800Medicare insurance500Medicaid insurance300Liability insurance300All others including self-pay100Table 1: Proportion of Each Payer(Source: Created by the researcher)2. Computation of individual rate of reimbursement for five payersUsing \$6200 as baseline, the rate of reimbursements attached with each of the five different payers is stated below. [Refer to Table no. 2]PayersProportionReimbursementRate (\$)TotalReimbursement(\$)Commercial insurances8005503410000Medicare insurance5003252015000Medicaid insurance3003001860000Liability insurance30010006200000All others including self-1005003100000
Evaluating Financial Statements3payTable 2: Reimbursement Rate of Each Payer(Source: Created by the researcher)3. Expected rates of reimbursementThe expected rate of reimbursements associated with each payer within the current time frame is given below in a tabular form.PayersReimbursementRate (\$)Commercial insurances550Medicare insurance325Medicaid insurance300Liability insurance1000All others including self-pay500Table 3: Expected Reimbursement Rate of Each Payer(Source: Created by the researcher)4. Calculation of total charges for all five insurance cases based on a changed rate of servicesFor each payer \$150 is required to be charged for the above mentioned insurance services. The below stated table is presented for showing new A/R rate by considering the \$150 as charges for each service. PayersProportionA/R rate(\$)Commercial insurances800120000Medicare insurance50075000

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