Cost Behavior & Profit Analysis, Cost Allocation, business and finance homework help

Class: Financial Management of Healthcare OrganizationsText-book: Healthcare Finance: An Introduction to Accounting andFinancial ManagementThis weeks readings: Cost Behavior & Profit AnalysisCost AllocationPricing & Service DecisionsPlanning & BudgetingAnalyzing Bay Pines Medical Center's Financial StatementAfter gaining anunderstanding of the components of a financial statement, analyzing andapplying what the components represent, in terms of future planning, are themost important aspects of working in healthcare finance. Consider the followingdata and make your best analysis of per member per month (PMPM) rates,considering reductions in utilization or pricing.Bay Pines Medical Centerestimates that a capitated population of 50,000 would have the following basecase utilization and total cost characteristics:Service CategoryInpatient Daysper 1,000 EnrolleesAverage Costper DayGeneral150$1,500Surgical125$1,800Psychiatric70$700Alcohol/Drug Abuse38$500Maternity42$1,500Total425$1,367In addition to medicalcosts, Bay Pines allocates 10 percent of the total premium foradministration/reserves.Tasks:On the basis of yourdata analysis, respond to the following:What is the PMPM rate that Bay Pines must set to covermedical costs plus administrative expenses?What would be the rate if a utilization managementprogram were to reduce utilization within each patient service category by10 percent? And by 20 percent?Consider the initial base case utilization assumption.What rate would be set if the average cost on each service were reduced by10 percent?Assume that both utilization and cost reductions weremade. What would the premium be?Submission Details:Present your analysis as a 3-page report in a MicrosoftWord document formatted in APA style.On a separate page, cite all sources using APA format.Name your documentSU_MHC6305_W3_A2_LastName_FirstInitial.doc.ByTuesday,June 9, 2015, submit your assignment to theW3 Assignment 2Dropbox.Assignment 2 Grading CriteriaMaximum PointsCalculated the PMPMrate to cover medical and administrative costs.40Calculated utilizationrates reduced by 10 percent.36Calculated utilizationrates reduced by 20 percent.36Calculated the ratewith the average service cost reduced by 10 percent.40Calculated the PMPMpremium after utilization and cost reductions.40Wrote in a clear,concise, and organized manner; demonstrated ethical scholarship in accuraterepresentation and APA style attribution of sources; displayed accuratespelling, grammar, and punctuation.8Total:200Additional RubricCriteriaUnsatisfactoryEmergingProficientExemplaryScoreAssignment Components:Calculated the PMPM rate to cover medical and administrativecosts0-14 PointsThe calculation of the PMPMrate is unclear and inaccurate.15-24PointsThe calculation of the PMPMrate is somewhat clear and accurate.25-35PointsThe calculation of the PMPMrate is clear and mostly accurate.36-40PointsThe calculation of the PMPMrate is clear and accurate and is supported by a peer reviewed reference.__of 40Calculated 10% reduced utilization rates0-12PointsThe calculation of the PMPMrate is unclear and inaccurate.13-25PointsThe calculation of the PMPMrate is somewhat clear and accurate.26-32PointsThe calculation of the PMPMrate is clear and mostly accurate.33-36PointsThe calculation of the PMPMrate is clear and accurate and is supported by a peer reviewed reference.__of 36Calculated 20% reduced utilization rates0-12PointsThe calculation of the PMPMrate is unclear and inaccurate.13-25PointsThe calculation of the PMPMrate is somewhat clear and accurate.26-32PointsThe calculation of the PMPMrate is clear and mostly accurate.33-36PointsThe calculation of the PMPMrate is clear and accurate and is supported by a peer reviewed reference.__of 36Calculated the rate with reduced average service cost by 10%.0-14PointsThe calculation of the PMPMrate is unclear and inaccurate.15-24PointsThe calculation of the PMPMrate is somewhat clear and accurate.25-35PointsThe calculation of the PMPMrate is clear and mostly accurate.36-40PointsThe calculation of the PMPMrate is clear and accurate and is supported by a peer reviewed reference.__of 40Calculated the PMPM premium after utilization and costreductions0-14PointsThe calculation of the PMPMrate is unclear and inaccurate.15-24PointsThe calculation of the PMPMrate is somewhat clear and accurate.25-35PointsThe calculation of the PMPMrate is clear and mostly accurate.36-40PointsThe calculation of the PMPMrate is clear and accurate and is supported by a peer reviewed reference.__of 40Presentation andWriting Components:OrganizationIntroductionTransitionsConclusion0PointsIntroduction is limited or missingentirely.Transitions between ideas areinfrequent, illogical, or missing entirely.Conclusion is limited or missingentirely. 0.5PointIntroduction is present butincomplete or underdeveloped.Transitions between ideas aresporadic.Conclusion is recognizable, butincomplete or underdeveloped.1 PointIntroduction has an opening,provides some background information, and states the topic.Transitions between ideas arepresent.Conclusionsummarizes main argument and has a clear ending.2PointsIntroduction catches theaudiences attention, provides compelling and appropriate backgroundinformation, and clearly states the topic.Thoughtful transitions betweenideas are appropriate and help the flow of ideas.Conclusionleaves the audience with a sense of closure and provides concluding insights.__of 2StyleToneAudienceWord Choice0PointsPresentation (including backgroundimages, text, choice of words, and appropriateness of tone) is lacking orcompletely overpowers the presentation to the point of interfering withcomprehension, or design is inappropriate for the assignment. 0.5PointPresentation (such as backgroundimages, text, choice of words, and appropriateness of tone) upstages thewriting, or design is too understated at points, or design is inconsistent. 1 PointPresentation (such as backgroundimages, text, choice of words, and appropriateness of tone) is clear,appropriate for the assignment, balanced, and compliments the writing. 2PointsPresentation (such as backgroundimages, text, choice of words, and appropriateness of tone) is clear, appropriate for theassignment, balanced, and compliments the writing throughout thepresentation. The design engages the audience and does not distract frominformation.__of 2Usage and MechanicsGrammarSpellingSentence structure0PointsAnywritten portion contains numerous errors in spelling, grammar, and/or hassentence structure that severely interferes with readability andcomprehension.0.5PointAnywritten portion contains errors in spelling and grammar that somewhatinterfere with comprehension.1 PointAnywritten portion follows conventions of spellingand grammar throughout. Errors are infrequent and do not interfere withcomprehension.2PointsThepresentation is basically error free in terms of mechanics. In any writtenportion, grammar and mechanics help establish a clear idea and aid the readerin following the writers logic. __of 2APA ElementsAttributionParaphrasingQuotationsWhen appropriate or assigned0PointsNo attempt at APA formatting in presentation.0.5PointAPA format is attempted toparaphrase, quote, and cite, but errors are significant.1 PointUsed APA format, accuratelyparaphrased, quoted, and cited in most areas throughout when appropriate orcalled for. Errors present are mostly minor.2PointsUsed APA format, accurately paraphrased, quoted, and cited throughoutwhen appropriate or called for. Only a few minor errors present.__of 2CommentsTotalScore ___2006 hours ago