The payer mix and expected volume (100 cases) for a hospital are as follows:
30 Medicare cases |
Pay $ 2,000 per case |
30 Blue Cross Blue Shield cases |
Pay $ 2,200 per case |
20 Commercial cases |
Pay 100 percent of charges |
10 Medicaid cases |
Pay average cost |
8 Self-pay cases |
Pay 100 percent of charges |
2 Charity cases |
Pay nothing |
Average cost per case is expected to be $2,200, and the average charge per case is $2,500. Determine the net operating income for the hospital.