The radiology department is developing a budget for DRG 250: Fracture, Sprain, Strain, and Dislocation of Forearm, Hand, and Foot: - This year the department saw 1,100 admissions for DRG 250 analyzed in the following way: 50 percent of the admissions were for a hand X-ray (which takes 5 minutes), 20 percent for a foot X-ray (which takes 15 minutes), and 30 percent for a forearm X-ray (which takes 30 minutes). - The budget committee is projecting a 15% percent increase in DRG 250 for next year, analyzed in the same proportions. - The controller states that the charges for a hand X-ray will be $75, for a foot X-ray will be $250, and for a forearm X-ray will be $475. - The controller also projects the payer analysis for DRG 250 to be 45 percent Medicare (DRG rate is 80 percent of charges), 35 percent Medicaid (DRG rate is 85 percent of charges), 10 percent managed care (discount is 20 percent of charges), and 10 percent self-pay (self-pay patients pay full charges, but 15 percent of self-pay patients don't pay their bills and their fees are recorded as charity care). - DRG 250 accounts for 30 percent of the radiology department's labor, supply, and overhead expenses. The department's labor expenses are $225,000—labor expenses are expected to increase 10 percent next year due to raises. The department's non-labor expenses (i.e., supplies) are $185,000—non-labor expenses are expected to increase 6 percent next year due to inflation. The department's overhead expenses are $375,000— overhead expenses are expected to increase 5 percent next year.

 
Requirement: Using the above-mentioned assumptions calculate next year's projected Gain (Loss) for DRG 250 in the radiology department.

Answer rating: 100% (QA)

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