Given the following information, calculate the net patient service revenue: Reve
ID: 2771307 • Letter: G
Question
Given the following information, calculate the net patient service revenue:
Revenue:
Premiums earned: $26,682,000
Co-insurance: $1,689,000
Interest and other income: $242,000
Total revenue: $28,613,000
Expenses:
Salaries and benefits: $15,154,000
Medical supplies and drugs: $7,507,000
Insurance: $3,963,000
Provision for bad debts: $19,000
Depreciation: $367,000
Interest: $385,000
The company is a not-for-profit managed care organization. Therefore, they don't have an account for "net patient service revenue," and they don't have any non-operating income.
Explanation / Answer
In healthcare administration,net patient revenue is calculated by subtracting expenses from inpatient and outpatient revenue services.
Premiums earned: 2,66,82,000.00 Co-insurance: 1689000 Interest and other income: 242000 Total revenue: 28613000 Expenses: Salaries and benefits: 15154000 Medical supplies and drugs: 7507000 Insurance: 3963000 Provision for bad debts: 19000 Depreciation: 367000 Interest: 385000 Expenses: 2,73,95,000.00 Inpatient and out patient revenue 26682000 Net patient revenue 9,76,000.00In healthcare administration,net patient revenue is calculated by subtracting expenses from inpatient and outpatient revenue services.