Question

Fargo memorial hospital has annual net patient service revenues of $14.4 million. The hospital's patient accounts manager estimates that 10 percent of third-party payers pay on day 30, 60 percent pay on day 60, and 30 percent pay on day 90.

Options:
a) $1.44 million, $4.32 million, $8.64 million
b) $1.44 million, $8.64 million, $4.32 million
c) $4.32 million, $1.44 million, $8.64 million
d) $8.64 million, $4.32 million, $1.44 million

Answer 1

The student is asking about the distribution of third-party payer payments for Fargo Memorial Hospital. The correct answer is option b) $1.44 million, $8.64 million, $4.32 million.

Step-by-step explanation:

The student is asking about the distribution of third-party payer payments for Fargo Memorial Hospital. The hospital's patient accounts manager estimates that 10 percent of payers pay on day 30, 60 percent pay on day 60, and 30 percent pay on day 90.

To calculate the amount of revenues received on each day, we can multiply the net patient service revenues by the corresponding percentages. Accordingly, the hospital would receive $1.44 million on day 30, $8.64 million on day 60, and $4.32 million on day 90. Therefore, option b) $1.44 million, $8.64 million, $4.32 million is the correct answer.