tasked with creating a cash flow analysis for new MRI equipment.

| March 31, 2017

Question
Payer

# of scans per week

Charge per scan

Total Charges

Basis of Payment

Net Payment per Scan

Total Payments

Medicare

10

$1000

$10,000

Fixed fee

$740

$7,400

Medicaid

5

$1000

$5,000

Fixed fee

$700

$3,50

Private Insurance

5

$1000

$5,000

Full charge

$1000

$5,000

Blue Cross

2

$1000

$2,000

Percentage of Charge

$840

$1,680

Managed Care

4

$1000

$4,000

Percentage of Charge

$750

$2,000

Self-Pay

1

1,000

$1,000

Full Charge

$110

$110

Total

27

$27,000

$19,690

Average

$1,000

$750

I am tasked with creating a cash flow analysis for new MRI equipment. Unfortunately I am not confident with how to calculate accurate numbers.

Below is the information that I need to analyze:

*The estimated average is $1000 per scan. 25% of this average is expected to be lost on discounts to payers, charity care, and losses.

* Each scan will cost the physician’s network $40 to in supplies

* The MRI service is expected to operate 50 weeks per year. 1.5 full-time employees will be required with an annual labor cost of $70,000, including benefits.

* There are no increased overhead costs associated with the opening as the physician’s network has an existing building that is currently vacant. Annually, the MRI machine requires $125,000 in maintenance costs.

* The long-term plan is to utilize this MRI system for five years. At this end of this period, the physician’s network will sell the MRI for salvage for $750,000 (deducting any removal costs).

Any assistance is greatly appreciated!

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