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Question

NormalNo Spac... Heading 1 Heading2 Title Subtitle Su Pasagraph Styles Day Class Meets: You are Accounts Receivable manager for General Medical Center (GMC). Your assignment is to determine the amount of payment GMC would collect from Best Managed Care (Best) under different payment methods. The following patient was admitted to GMC. Use the information for this patient's accounts to calculate the payment amount to be collected by GMC for different payment methods Patient Account: 12345 Patient Name: Joe Limbo Admit Date: February 10, 2017. Discharge Date: February 14, 2017 Billed Charges: $30,00o Length of Stay 4 Diagnostic Related Group (DRG): 456 Cardiac Bypass Answer the following payment method questions. You MUST show your work or you will not be given credit for the 1 ErmeBest'scontractstatestatBestpays10 %ofbilledchanes Howrmuch wouldGMColectforte Assume Best's contract states that Best is to receive a 25% discount on billed charges. How much would GMC collect for the above patient account? 2. 3. Assume GMCs ratio of cost to charges 40% and that Best's contract states that Best is to pay GMC at cost. Hove 5 8 9 0

Explanation / Answer

1. GMC has to revovered 100% amount from Best so NIL Amount will be recoverd from customer.

2. GMC has to revovered 25% amount from Best so 75% amount will be recoverd from customer.

i.e. 30000*75%=22500 will be recovered from Customer.

3. Cost to charge ratio=40%

therefor cost=billing charges*Cost to charge ratio

=30000*40%=12000

so 12000 will be recovered from best and remaining 18000 will be recovered from customer

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