1. The Mission Viejo Medical Center (in Mission Viejo, California,) comprises two institutions that are geographically adjacent:
a. Mission Hospital Regional Medical Center; website: Mission Hospital Regional Medical Center
b. Children’s Hospital at Mission (CHM); website: Children’s Hospital at Mission (CHM) https://www.mission4health.com/affiliations/choc-childrens-at-mission.html
2. The two hospitals serve (within less than a 10-mile radius) the populations of the following nine municipalities: Aliso Viejo, Ladera Ranch, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Mission Viejo, Rancho Santa Margarita, and San Juan Capistrano.
3. There are two retirement communities in the service area:
a. The city of Laguna Woods (https://www.lagunawoodscity.org/) is home to Leisure World (https://www.lagunawoodsvillage.com/ ), a retirement community of more than 23,000 residents age 55 and older.
b. The city of Mission Viejo is home to Casta Del Sol, a retirement community of more than 3,000 resdients age 55 and older.
4. Following the example and success of integrating a special children’s hospital, it is suggested that an additional new hospital be built, catering to the special needs of the senior population, to be named: Golden Age Hospital (GAH).
Instructions:-
Add to the draft (see attached document), focus on Finance and Budgeting issues for the proposed GAH and Community Clinic and address the following:
1. Define the following requirements and assumptions:
a. Cost of facility construction, initial medical equipment and instrumentation will not be calculated; they will be fully paid by the state as a grant.
b. All senior patients will be above the age of 65, and will have only federal Medicare health insurance. Research the major constructs of Medicare health coverage as defined by the Medicare Prospective Payment System.
c. The hospital and clinic will be financially balanced, that is, income from Medicare payments will cover in full all operating costs.
2. “Medicare Prospective Payment System”
a. The hospital is reimbursed by the government per procedure and/or treatment by a predefined sum and not by the actual expenses performed for and on a particular patient.
b. For example, a patient requiring open heart surgery will utilize the services of physicians, nurses, the OR, the laboratory, and the pharmacy, and will occupy a hospital bed for an average of six days. If a certain patient is discharged after four days, the hospital will still be paid for six full days. Hence, the incentive is to operate efficiently and effectively, enabling the hospital to “save money.”
3. Based on the services/treatments on GAH Project table (see attached):
a. Input estimated and rounded Medicare reimbursement to GAH in (in thousands of dollars) for each treatment in column B (assign for each a figure between $10,000 to $60,000).
b. The projected number of procedures/treatments performed annually at GAH is in column C.
c. Calculate the total income for GAH in column D by multiplying columns B and C.
d. The GAH Projected Performance percentage, relative to the federal standard (100%) is in column E.
e. Calculate the total GAH gain or loss by D-(D*E) in column F.
4. Assume a $375,000 annual miscellaneous expense.
5. Prepare (based on the table), a forecast of profit or loss for GAH for the first year of operation.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]