Here is $1$ case study used in our program. We will utilize inputs from this case.

Southview Health System:

Southview Health System $($SHS$)$ is a not$-$for$-$profit health system anchored by Southview

Hospital, an $840-$bed facility on the campus of Southview University in Philadelphia, PA$.$ The

University has the Southview School of Medicine and supports clinical training at its hospitals,

as well as supporting translational research. The system boasts $12$ additional hospitals that

have between $150-250$ beds in surrounding counties and states. Its $40,000-$member employee

base includes over $100$ ambulatory centers, including two medical groups of $5,000$ specialists

and family medicine$/$primary care specialists. The organization's IT platform shares one

electronic medical record.

Demographics

The primary service area is $9$ million with a diverse population: $42\%$ black, $36\%$ white, $14\%$

Latinx, and $6\%$ Asian, and $2\%$ other.

The payor mix of the insured is

$51\%$ Medicare

$38\%$ commercial $($private insurance$)$

$9\%$ Medicaid

$2\%$ self$-$pay $($majority cash$)$

The uninsured rate for the area is typically $19\%.$

Question $1.$ Create an Annual Proforma Income Statement in Excel for this health system, using inputs in the tables below

Question $2.$ Does this system have a positive or negative margin?

Payer Payment

Medicare: $$35\mathrm{.}00$

Medicaid: $$25\mathrm{.}00$

Commercial: $$45\mathrm{.}00$

Self$-$Pay $$5\mathrm{.}00$

Volume

Time Volume

Days $250$

Visits$/$Day $144$

Cost

Item Cost

Supplies$/$Visit $$5\mathrm{.}50$

Annual Overhead to Health System $$75,000$

Position FTEs CVHS Salaries SHS Salaries

MD Salaries $2\mathrm{.}00$ $$209,000$ $$220,000$

RN Salary $2\mathrm{.}00$ $$76,000$ $$80,000$

APP Salary $1\mathrm{.}00$ $$114,000$ $$120,000$

Medical Assistant $1\mathrm{.}00$ $$38,000$ $$40,000$

Patient Service Representative $1\mathrm{.}00$ $$38,000$ $$40,000$

Benefits $25\mathrm{.}00\%25\mathrm{.}00\%$