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1. STRAYER HSA 525 Week 2 Homework 1 Ex 4-1, Ex 4-2. Ex 5-
1,
Ex 5-2 NEW
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Exercise 4-1: Contractual Allowances
Assignment Exercise 4-1: Contractual
Allowances Physician Office Revenue for Visit
Code 99214 has a full established rate of $72.00.
Of ten different payers, there are nine different
contracted rates, as follows: Contracted Payer
Rate FHP $35.70 HPHP 58.85 MC 54.90 UND
60.40 CCN 70.20 MO 70.75 CGN 10.00 PRU 54.90
PHCS 50.00 ANA 45.00 Rates for illustration
only. Required 1. Set up a worksheet with four
columns: Payer, Full Rate, Contracted Rate, and
Contractual Allowance. 2. For each payer, enter
the full rate and the contracted rate. 3. For each
payer, compute the contractual allowance. The
first payer has been computed below: Full
Contracted Contractual Payer Rate (less) Rate =
Allowance FHP $72.00 $35.70 $36.30
Assignment Exercise 4-2: Revenue Sources and
Grouping Revenue The Metropolis Health
System has revenue sources from operations,
donations, and interest income. The revenue
from operations is primarily received for
services. MHS groups its rev-enue first by cost
center. Within each cost center the services
revenue is then grouped by payer. Required 1.

2. Programs, Patients, Commercial Insurance, and Managed Care
Contracts. 2. Certain situations concerning the Intensive Care
Unit and the Laboratory are described below. Set up six vertical
line items on your worksheet, numbered (1) through (6). Six
situa-tions are described below. For each of the six situations,
indicate its number (1 through 6) and enter the appropriate
cost center (either Intensive Care Unit or Laboratory). Then
place an X in the column(s) that represents the correct revenue
source(s) for the item. The six situations are as follows: (1) ICU
stay billed to employee's insurance program. (2) Lab test paid
for by an individual. (3) Pathology work performed for the
state. (4) ICU stay billed to member's health plan. (5) ICU stay
billed for Medicare beneficiary. (6) Series of allergy tests run
for eligible Medicaid beneficiary.
Assignment Exercise 5-1: Grouping Expenses by Cost Center The
Metropolis Health System's Rehabilitation and Wellness Center
offers outpatient therapy and return-to-work services plus
cardiac and pulmonary rehabilitation to get people back to a
normal way of living. The Rehabilitation and Wellness Center
expenses include the following: • Nursing Salaries • Physical
Therapist Supplies • Physical Therapist Salaries • Occupational
Therapist Supplies • Occupational Therapist Salaries • Cardiac
Rehab Supplies • Cardiac Rehab Salaries • Pulmonary Rehab
Supplies • Pulmonary Rehab Salaries • Training Supplies •
Patient Education Coordinator Salary • Clerical Office Supplies •
Nursing Supplies • Employee Education Required 1. Decide how
many cost centers should be used for the above expenses at the
Center. 2. Set up a worksheet with individual columns across
the top for the cost centers you have chosen. 3. For each of the
expenses listed above, indicate to which of your cost centers it
should be assigned.
Assignment Exercise 5-2 Required Find a listing of expenses by
diagnosis or by procedure. The source of the list can be internal
(within a health care facility of some type) or external (such as

3. a published article, report, or survey). Comment upon whether
you believe the expense grouping used is appropriate. Would
you have grouped the expenses in another way?