Solution to Assignment Exercise 13-3

Q: How many procedures are attributed to each payer?

Solution : The unit has performed a total of 2,000 procedures. Of these,

Payer 1 = 30% x 2,000 = 600 procedures

Payer 2 = 40% x 2,000 = 800 procedures

Payer 3 = 20% x 2,000 = 400 procedures

Payer 4 = 10% x 2,000 = 200 procedures

____

Proof Total = 2,000

Q How much is the net revenue per procedure for each payer, and how much is the contractual allowance per procedure for each payer?

Solution: The computation is as follows:

Q: How much is the total net revenue for each payer, and how much is the total contractual allowance for each payer?

Solution part one: The total net revenue computation for each payer is as follows:

Solution part two: The total contractual allowance computation for each payer is as follows:

Solution Proof Total: $142,000 plus $58,000 = $200,000.

Solution to Assignment 13-4.1

There is no specific solution to this assignment.

Remember, all infusions average two hours apiece. Adding another nurse for six hours means you could probably fill chair numbers 1, 2 and 3 each with 3 patients each if the patient arrival times were staggered and all factors worked smoothly. This scenario would amount to a capacity level total of 9 patients in an ideal day, versus 7 patients as shown in Exhibit 13-1, for a net gain of 2 patients. Adding another nurse for four hours, however, means you could probably fill chair number 1 and 2 each with 3 patients and chair number 3 would remain at 2 patients per day. Compared to 7 patients per day in Exhibit 13-1, this is a net gain of 1 patient.

Solution to Assignment 13-4.2

If you have 4 chairs, you have to have the second nurse for at least four hours. The daily capacity level would probably amount to 3 patients in Chairs #1 and 2 and 2 patients in Chairs #3 and 4, for a capacity level total of 10 patients in an ideal day. Compared to 7 patients per day in Exhibit 13-1, this is a net gain of 3 patients. If you have 4 chairs and have the second nurse for six hours, the daily capacity level would probably amount to 3 patients in Chairs #1, 2 and 3 and 2 patients remaining in Chair #4. This capacity level total amounts to 11 patients in an ideal day, for a net gain of 4 patients over the 7 patients assumed in Exhibit 13-1.

Solution to Assignment Exercise 14-2

5-Year Projected Revenue Totals:

Hospital 1 = $125,500,000

Hospital 2 = $128,960,000 including inflation adjustment, as shown in solution above

Hospital 2 = $116,000,000 before inflation adjustment, as shown in assignment assumptions above

Inputs for solution:

* Assume an annual inflation rate of 5%. Thus 1.00 + 0.05=the 1.05 factor in Column C.

** Column D “Nominal Dollars” equals Column B times Column C.

Solution to Assignment Exercise 14-3:

Provide exchange rates for both pounds and euros and should provide computations for both $500 and $1,000 in each currency. As to the actual computations, for example, assume the Wall Street Journal “Currencies” section shows the euro (shown under “Europe: Euro area) is trading as follows: “in US$$” = 1.425 and “per US$$” = .7010

Thus at this exchange rate 500 U.S. dollars would be converted into about 350 euros (500 times .7010 equals 350 euros [rounded]), and 1,000 U.S. dollars would be converted into about 700 euros (1,000 times .7010 equals 700 euros [rounded]).

Furthermore, assume the Wall Street Journal “Currencies” section shows the British pound (shown under “Europe: UK [United Kingdom] pound)” is trading as follows:

“in US$$” = 1.500 and “per US$$” = .6667

At this exchange rate 500 U.S. dollars would be converted into about 333 pounds (500 times .6667 equals 333 pounds [rounded]), and 1,000 U.S. dollars would be converted into about 667 pounds (500 times .6667 equals 667 pounds [rounded]).

Solution to Assignment Exercise 14-4:

While solutions will vary, this should be covered:

· review the information provided within this assignment for all three sites

· refer to Appendix 25-A for additional information

· organize the relevant information provided

· make and document a series of assumptions

· determine costs for each site, based on the information and the assumptions

· prepare a report that presents the cost comparisons for grounds care between and among the three sites

· prepare an assessment of what the best future course of action should be.

1. How would the following influence the growth rates of M1 and M2 money supply figures over time?

a) An increase in the quantity of US currency held overseas.

b) A shift of funds from interest-earning checking deposits to money markets mutual funds.

c) A reduction in holdings of currency by the general public because debit cards have become more popular and widely accepted

d) The shift of funds from the money market mutual funds into stock and bond mutual funds because the fees to invest in the later have declined.

2. Supposed that the reserve requirement is ten percent and the balance sheet of the People’s National Bank? Does the bank looks like the accompanying examples.

ASSETS LIABILITIES vault cash - $20,000 checking deposits - $200,000 deposits at fed - 30,000 net worth - 15,000

securities - 45,000 loans - 120,000

a) What are the required reserves of people national bank? Does the bank have any excess reserves? Required reserves are $20,000 and excess reserves are $30,000

b) What is the maximum loan that the bank could extend?  

c) Indicate how the banks’ balance sheet would be altered if it extended this loan. 

d) Suppose that the required reserves were 20 percent. If this were the case, would the bank be in a position to extend any additional loans? Explain.

3. Historically, shifts towards a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? Why or why not? Can an expansion in the money supply increase real output and employment? Why or why not? Can

4. What impact will an unanticipated increase in the money supply have on real interest rate, real output and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain.