In week 2, I will be discussing a table showing the contracted payer, contracted rate, and contractual allowance. I will show the table below with and discuss how on could increase or decrease revenue in this system. Lastly, I will then describe how I could increase revenue or realize loss in this system. My conclusion will be an overview of my findings and what is importance. Use the following data to complete a table showing the established rate (Column A), contracted rate (Column B) and the difference (Column A minus Column B) as a contractual allowance for each payer. Then, briefly discuss how one could increase or decrease revenue in this system. A physician office's revenue for visit code 99214 has a full established rate of $72.00. There are 10 different payers; there are nine different contracted rates, as follows:
• Set up a worksheet with four columns: Payer, Full
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First, what is contracted rate and the contractual allowance? “Contractual allowances are the difference between the full established rate and the agree-upon contractual rate that will be paid” (Baker & Baker, 2013, p. 32). I think the increase in the full rate could equal to an increase in contractual allowances. What I see here is that ten contracted payers and six of them have a realized loss in revenue, which is a decrease in revenue. As I stated before, to increase the revenue one would need to increase the full rate. By subtracting the full rate from the contracted rate, it would equal the contractual allowance. Our textbook also states, “It is not uncommon for different plans to pay different contractual rates for the same services” (Baker & Baker, 2013, p. 33). Concluding to my end statement, different plans (the payer) could charge a different full rate than other plans for the same services and receive more revenue by increasing the full rate in
Middleton Mutual is a large insurance company that is seeking innovation. The Chief Information Officer, Dennis Devereaux, and Vice President of Information Systems, Max Vargo, are trying to push for a new expert system to ease up the underwriting process of their company. The issue that arises in the company is that certain higher ups aren’t willing to fund this one million dollar project without proof of return. Within the next year, the company will be losing two underwriters. Devereaux has his hands full with trying to get the company’s financial approval.
$15000/4=$3750 for each period. --- $3750 is compensation cost of OMS recognize in 2012 and in 2013.
Chapter 6 describes revenue determination. Write a 3-4 page paper to include: List and discuss the three payment-determination bases. Explain the difference between a “specific services” payment unit compared to a “bundled services” payment unit. Describe the three major ways that health care providers can control their revenue function. I expect at least 5 secondary sources properly cited and referenced for this paper.
If a breach of contract is both material and opportunistic, the injured promisee has a claim in restitution to the profit realized by the defaulting promisor as a result of the breach. Liability in restitution with disgorgement of profit is an alternative to liability for contract damages measured by injury to the promisee.
Reintiate negotiations by introducing new negotatiors in the equation, and discussing some of the isuses on table to achive pareto efficent frontier (Lewicki, Saunders, Barry, 2011, p. 62). Negotiators should find a bride solution in accordance with stratergies of integrative negotation. In current circumstances TexasAgs is taking heavy losess to get the contract signed, this is not good for a long term business relation.
...method to have more than one pitcher. The pitchers were an unnecessary purchase from the standpoint of purchasing excessive amounts of equipment. From the perspective of revenues versus expenses, the Lemonade stance was profitable leaving a net income and profit from the beginning to the end of the reporting period. The accounts payable uses half of the owner's capital, which was useful because the money was cash invested to start the business, which decrease the amount of liabilities presented on the balance sheet. Overall, the Lemonade stand was successful. From day one to day three the ending store balances and cash balances continues to increase. On day four, the stand paid the store account dropping revenues for that day. On day five and six, the cash sales for those days picked up and the expenses decrease by 3 cents, which was minor but helpful with revenues.
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
5 Recognition and Measurement in Financial Statements of Business Enterprises, revenue should not be recognized until they are realized or realizable (FASB, 1984). In other words, when revenues are recognized if they are realizable is when the stated assets have need received or they are readily held convertible to known figures. It is also stated that revenue can be recognized when it is earned. Accounting Standards Codification 606-10-25-1 states that an entity shall account for a contract with a customer that is within the scope of: the parties to the contract approving the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations, the entity can identify each party’s rights regarding the goods or services to be transferred, the entity can identify the payment terms for the goods or services to be transferred, the contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract), and it is probable that the entity will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer (FASB,
Our decision is that Mr. Butkus should choose to implement both options. The additional capacity is definitely needed, and the demand to fill the capacity is also present. We calculated the possible revenue that could be earned under two sections: Low additional demand and High additional Demand. The additional revenue generated in these two scenarios are $42 900 and $31 200, respectively. Also, the in both of these scenarios, the time needed to pay for the cost of the required expansions are less than a year.
This company was effective in convincing customer’s retention personal to accept his proposed terms. He honed his negotiating techniques over time to ensure that billcutterz.com used the best possible leverage points with service providers to achieve large
In a significant step towards convergence, the FASB and IASB (“the Boards”) issued the Exposure Draft, Revenue from Contracts with Customers in 2010. The goal was to create a single joint revenue recognition standard that companies could apply consistently across industries and capital markets thereby improve financial reporting. The Boards highlighted a number of improvements in the proposed standard - removing inconsistencies, improving comparability, requiring enhanced disclosures and clarifying the accounting for contract costs. Instead of focusing on “realized/realizable” and “earned” the Exposure D...
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
Terms of contract set out duties of each party under that agreement, a contractual term is legally binding to the relevant parties involved while a representation is more towards showing interest in forming a contract but is not legally binding. There are two different types of terms which are known as express terms and implied terms. An express term are terms that are laid down by the parties themselves whereas implied terms are read into the contract by the court on the basis of the nature of the agreement and the parties’ apparent intentions, or on the basis of law on certain types of contract. Statements made during the course of negotiations could amount to a contractual term or a representation. It is important to know whether a particular statement is a contractual term or if it is a representation, as this will determine the appropriate cause of action and remedy available. In the case of Heilbut, Symons & Co v Buckleton, the court held that there are 4 factors that must be taken into consideration before deciding whether the statement is a term or a mere representation.The first factor is known as time. Here, the courts will consider lapse of time between the making of the statement and the contract's conclusion. In other words, if the interval is short the statement is more likely to be a term. Routledge v. McKay. However, if the statement is otherwise strong and important, then this may override the significant delay between when the statement was made and when the contract was made. Schawel v. Reade The second factor that the courts take into consideration is the importance of the statement in finalising the contract. If the statement is so important that a party would not otherwise have entered into the contract, the...
The newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision will affect everyone's earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon require a new sales rep.
During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that had been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task.