Health Care Services Reimbursement

Question DescriptionIn 2013, the Gastroenterology Clinic of Pearland Medical Center hadrevenue totaling $14,550,400. The Gastroenterology Clinic costs data fora 12-month period from January 2013 through December 2013 were reportedas follows: Month, 2013 Number of Patient VisitsGastroenterology Clinic Costs, $January6,755945,700February6,620946,660March5,834880,934April6,228927,972May7,554944,250June7,620914,400July7,136949,088August7,440959,760September6,453942,138October5,325825,375November5,588854,964December7,020961,740Find the fixed and variable portion of costs using the high-low method.Calculate the contribution margin, the contribution margin ratio, and the per-visit revenue, costs, and operating income.Discuss the importance of computation of the contribution margin in evaluating the relationship of cost, volume, and profit.In deciding to continue (or to discontinue) a service, whichrevenues currently do not cover total cost. Which is more important inthe short run, variable cost or fixed cost? In the long run (with moreservice volume)? Why?Length: 3–4 pages, excluding title page and references. SLP Assignment ExpectationsAssessment and Grading: Your paper will be assessed based on theperformance assessment rubric that is linked within the course. Reviewit before you begin working on the assignment.Your submission should meet the guidelines on file format, in-textcitations and references, scholarly sources, scholarly writing, and useof direct quotes noted under Module 1 Assignment Expectations.Required ReadingBerenson, R. A., & Rich, E. C. (2010). U.S. approaches to physician payment: The deconstruction of primary care. Journal of General Internal Medicine, 25(6), 613-618.Chang, K. & Said, A.A. (2014). The impact of outsourcing on hospital performance. International Journal of Management Accounting Research, suppl. Special Issue. Health Care Costs and Performance, 4(1), 7-26.Hennig-Schmidt, H., Selten, R., & Wiesen, D. (2011). How paymentsystems affect physicians’ provision behavior – An experimentalinvestigation. Journal of Health Economics, 30(4), 637-646.

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