Goodwill

Good Will General Hospital is introducing a new service that anticipates to have 550 patient visits per year at an average cost per visit of $2,200 and and average billed charges per visit of $4,500.

Determine the gross revenue, contractual deductions, net patient revenue, total costs and net operating income for both Medicare and Medicaid that would result given the terms in the table below.

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Payor Class  Number of patient visits Payment per case Gross Revenue Contractual Deductions Net Patient Revenue Total Costs   Net Operating Income

Medicare              350         $2,050

Medicaid               200                                      $1,650

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