1: (10 pts) From the data in the table above, determine the amount of revenue that needs to be generated to meet hospital financial requirements. 2: (10 pts) Why is the accumulation of funded reserves for capital replacement more critical for non-profit healthcare entities than for investor-owned facilities? 3: (10 pts) Depreciation expense is recognized as reimbursable cost by a number of payers who pay prospective rates for operating costs. Would you prefer accelerated depreciation (sum of the year's digits) or price-level depreciation for a 5-year life asset with a $200,000 cost? Assume that inflation is projected to be 7% per year. 4: (10 pts) Using the data above, calculate the impact of a 8% reduction in operating expenses on the required revenue and rate structure. Discuss the implications of your findings. 5: (10 pts) Medicare currently reimburses hospitals for 68% of bad debts on Medicare patients, copayments, and deductibles. If your hospital had $1,200,000 in Medicare deductibles and copayments, what amount might Medicare pay for its bad debts if 12% of the total will remain uncollectable?