• Explains how the change in payer mix will impact the overall projected revenue of the unit.
• Describes the financial impact of a changing payer mix.
• Lists recommendations for the manager to consider in expenses, so that the budget will balance as neutral.
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Prior Year Revenue Budget 300 patient Payment 22,436 18,400 29,540 32,350 Source of Payment Percent Number Income Medicare 34% 102 2,288,472 607,200 3,987,900 291,150 Medicaid 11% 33 Contracted Insurance 45% 135 Non-contracted Ins 3% ACA Plans 5% 15 16,400 246,000 Self-pay 17,400 104,400 7,525,122 2% Total 300 Next Year Revenue Projections 340 patient Payment Source of Payment Percent Number Income Medicare 42% 143 22,463 3,212,209 Medicaid 18% 61 18,400 1,122,400 Contracted Insurance 18% 61 29,549 1,802,489 Non-contracted Ins 1% 3 32,350 16,400 97,050 1,000,400 ACA Plans 18% 61 Self-pay Total 3% 11 16,400 180,400 100% 340 414,498 110,624 To be cut from the budget to serve same number of patients Prior Year Revenue Budget 300 patient Payment 22,436 18,400 29,540 32,350 Source of Payment Percent Number Income Medicare 34% 102 2,288,472 607,200 3,987,900 291,150 Medicaid 11% 33 Contracted Insurance 45% 135 Non-contracted Ins 3% ACA Plans 5% 15 16,400 246,000 Self-pay 17,400 104,400 7,525,122 2% Total 300 Next Year Revenue Projections 340 patient Payment Source of Payment Percent Number Income Medicare 42% 143 22,463 3,212,209 Medicaid 18% 61 18,400 1,122,400 Contracted Insurance 18% 61 29,549 1,802,489 Non-contracted Ins 1% 3 32,350 16,400 97,050 1,000,400 ACA Plans 18% 61 Self-pay Total 3% 11 16,400 180,400 100% 340 414,498 110,624 To be cut from the budget to serve same number of patients

Answer rating: 100% (QA)

Change in Payer Mix Different payers pay differently for different services in the healthcare setting Change in payer mix will significantly impact th... View the full answer