Question

A hospital has 100 beds in 50 semi private rooms. Average occupancy over the past several years has been 70%. Determine the number of projected encounters using the 70% occupancy factor. Determine the number of weighted encounters under the assumption that the assigned weight is 4.0.

Answer 1

Beds = 100

Average occupancy = 70 %

Encounters $= 100 \times 365 \times 70 \% = 25550$

Weighted encounters = weightage $\times$ encounters $= 25550 \times 4.0 = 102200$

Revenue budget = weighted encounters $\times$ value per weighted encounter $= 102200 \times 100 = 10220000$

Revenue budget post discount factor $= 10220000 \times (100 \% -40 \%) = 6132000$