Question

High Point Clinic is projecting 50,000 visits in 2019. It has two payers: Blue Cross, which is 55% of the clinic's volume and pays $35 per visit, and Medicare, which is 45% of the clinic's volume and pays $25 per visit. What is the budgeted revenue for High Point Clinic for 2019?

Answer 1

Answer:

Budgeted Revenue for High Point Clinic is $1525000

Explanation:

Total Patient Visit = 50000

Blue Cross Revenue Percentage = 55%

Medicare Revenue Percentage = 45%

Hence share of revenue of Blue Cross = 50000 x 55% = 27500 Patients

Medicare Revenue Share = 50000 x 45% = 22500 Patients

Revenue of Blue Cross = 27500 Patient x $35 Per Visit = $962500

Revenue of Medicare = 22500 Patient x $25 Per Visit = $562500

Total Revenue of High Point Clinic = $1525000