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| Teaching Since: | May 2017 |
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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
Professor
University of Santo Tomas
Aug-2006 - Present
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Analyzing Bay Pines Medical Center's Financial Statement
After gaining an understanding of the components of a financial statement, analyzing and applying what the components represent, in terms of future planning, are the most important aspects of working in healthcare finance. Consider the following data and make your best analysis of per member per month (PMPM) rates, considering reductions in utilization or pricing.
Bay Pines Medical Center estimates that a capitated population of 50,000 would have the following base case utilization and total cost characteristics:
In addition to medical costs, Bay Pines allocates 10 percent of the total premium for administration/reserves.
Tasks:
On the basis of your data analysis, respond to the following:
Assume that both utilization and cost reductions were made. What would the premium b
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