Respond to the following questions in a Word document.
1. In paragraphs, define each of the following terms and describe their roles within a medical office.
Overhead ratio
Cost ratio
Revenue ratio
Profit ratio
Billing Rate
Salary Rate
2. Determine the correct answers to the following examples of office ratios.
Billing Rate Per Patient: Total billing ÷ Number of patients = average amount billed for each patient.
Determine the billing rate for each of the following scenarios:
a) $215,000 Total billing, 4000 Patients
b) $325,000 Total billing, 1800 Patients
Salary Rate Per Patient: Salary ÷ total patients seen doctor salary
Determine the salary rate for each of the following scenarios:
a) $65,000 doctor salary, 325 patients
b) $85,000 doctor salary, 600 patients
Profit Ratio: Total revenue per procedure minus total costs per procedure = profit
Determine the profit ratio for each use of an EKG:
a) Cost of an EKG: $2,850, Amount billed per patient: $300
b) Cost of a Microscope: $990, Amount billed per patient: $ 25.00
3. Answer the following questions:
Profit and loss expenses for the month are found where?
What is an accrual reporting system?
To fully understand the daily cash flow within an office, which type of accounts should be analyzed?
An income/expense statement provides what summary data?