552 EXAMPLES AND EXERCISES, SUPPLEMENTAL MATERIALS, AND SOLUTION Required Perform common sizing for the assets of the two hospitals. Same Year for Both Hospitals Hospital A Hospital B Current Assets $ 2,000,000 $ 8,000,000 Property, Plant, & Equipment 7,500,000 30,000,000 Other Assets 500,000 2,000,000 Total Assets $10,000,000 $40,000,000 Assignment Exercise 14-1: Common Sizing Refer to the Metropolis Health System (MHS) comparative financial statements appearing in Appendix 33-A. Required Common size the MHS statement of revenue and expenses. xample 14B: Trend Analysis ter text abo lis Health Metros mi's Financial System's Sy statements an rpts from Note 33-A Excerpts Metropolis Health System Balance Sheet March 31, 20X3 and 20X2 went Assets Cash and band cash equivalents es whose use is limited ent accounts receivable allowance for bad debts $1,150,000 825,000 8,700,000 (1.300.000) 150,000 Paient accou Les allowanc 825.000 8.950.00 1.300 ) 100.500 850.000 150.000 900,000 200,000 Other receivables Inventories of supplies Prepaid expenses Tocal Current Assets Issets Whose Use Is Limited 10,625,000 9.975,000 1,950,000 1.800.000 1.475.000 1,425,000 3,375,000 (825,000) 2,550,000 3,275,000 (825,000) 2,450,000 Corporate funded depreciation Under bond indenture agreements held by trustee Total Assets Whose Use Is Limited Less Current Portion Net Assets Whose Use Is Limited Property, Plant, and Equipment, Net Other Assets Total Assets 19,300,000 325,000 19,200,000 375,000 $32,000,000 $32,800,000 Metre Health System OS CHAPTER Metal Health System March 31. 120x3 and 20X2 Liabilities and hand Balance Current Liabilities Current maurities of long-term debt Accounts payable and accrued expenses Bond interest payable Reimbursement settlement payable Total Current Liabilities Long-Term Debt Less Current Portion of Long-Term Debt Net Long-Term Debt Total Liabilities $525.000 4.900.000 300.000 100,000 5,825,000 6,000,000 (525,000) 5,475,000 11,300,000 6 $$$ 12.3498 Fund Balances General Fund 21,500,000 21,500,000 $32,800,000 19,700 19,700 Total Fund Balances Total Liabilities and Fund Balances $32,800 How m. How many procedur ocedures has your unit recorded for the period to date? w procedures are attributed to each payer? these, how many procedure e of these is the net revenue per procedure for each paver, and how muc e per procedure for each payer? How much is tractual allo yer, and how much is the con- ament Exercise 14-3 osignment va follow-up to 1. Your unit's gr . The uniform & The unit red -up to the previous Practice Exerci ise, new assumptions are as follows: nit's gross charges for the period to date amount to $200,000. uniform gross charge for each procedure in your unit is $100. be unit receives revenue from four maio hour major payers. The number of procedures perfor . Of that total, the number of procedures per payer (statec for the period totals 2,000. Of that percentage) is as follows: Payer 1 = 30% Payer 2 = 40% Payer 3 = 20% Payer 4 = 10% 4 The following contractual payment arrangements are in effect for the current peri percentage of the gross charge that is currently paid by each payer is as follows: Payer 1 = 80% [Medicare] Payer 2 = 70% [Commercial managed care plans] Payer 3 = 50% [Medicaid] Payer 4 = 90% [Self-pay] Q: How many procedures are attributed to each payer? How much is the net revenue per procedure for each payer, and how much is tual allowance per procedure for each payer