Solved by verified expert:Attached is the case study, rubric, and instructions. Please help. I will take it in partials as it is completed. Thank you so much.
casestudy.pdf
instructions_and_rubric.docx
Unformatted Attachment Preview
Bobcat Integrated Delivery System Case Study
The students are required to complete the case study beginning on page 381 of the textbook. The case
study may take over 100 hours to complete. While most of step #2 has a definitive answer, the other 17
steps are based on assumptions the students are encouraged to make and identify in their answer. The
answers will be in memo format (totaling 18 separate memos) from the students acting as the new chief
financial officer to the instructor acting as the chief executive officer. The memos should be short and
concise and should stand on their own merits (for example, instructors should not need to read memo
#5 to understand what is going on in memo #7, nor should the instructor need to read the attachments
to memo #7 to understand memo #7). Students are allowed to add attachments to supplement the
memo, not replace the memo. Question #19 and #20 are free standing. The rubric below assigns points
to each step based on amount of effort and degree of difficulty in the step. Some steps require outside
reading and research by the students in order to receive full point values. Where necessary in the rubric,
brief commentary appears to describe variability that might be considered acceptable.
Criteria
Executive Reports
2014 Statement of Operations
Scruggs lawsuits
Physician relations
ACA/ACO analysis
Points Variability to assist with answering section
2
Regarding the medical staff satisfaction report, students
should research and identify ways that hospitals can
improve physician satisfaction. Regarding the report on Mr.
Salter’s job performance, students should concentrate on
the poor operating performance described in the case and
ratified in step #2. Students may want to question the
organizational integrity of the CFO having a reporting
relationship to the board.
12
4
Students should review the Scruggs lawsuits and provide a
detailed list of practices that can be implemented by the
nonprofit hospital in order to avoid such litigation.
Students should also provide an analysis of PPACA for
nonprofit hospitals, including ways nonprofit hospital can
comply with the legislation
4
Students should provide a list of physician incentives and
approximate costs to Bobcat. Students may want to
explore physician employment, and if they do, students
should discuss the effect of the corporate practice of
medicine act in the student’s state. The recommendation
should provide a rationale
4
Students should review the ACA as it relates to ACOs and
provide a list of advantages and disadvantages related to
Bobcat becoming an ACO. The recommendation should
provide a rationale.
ACA bad debt and charity care
analysis
4
HIPAA privacy violation analysis
4
Students should identify national estimates for the declines
in both bad debt and charity care and apply the national
numbers to Bobcat using either a percent of revenue or a
bad debt
Billing Practices
Medicare Initiatives
Managed Care Agreement
4
3
4
2015 RVU schedule
Price Transparency laws
EOQ analysis
4
3
3
Strategic Financial Plan
Budgets
5
20
CT unit analysis
Long-term debt/loan
4
4
Ratio Analyses
Nursing Proposal
4
4
The full cost answer should be consistent. Students should
start with the gross revenue for the capitated contract.
Students should apply the RCC (.653) to the gross revenue
to compute total costs for the capitated contract.
Subtracting total costs from net revenue should give the
full cost loss of about $3,678,000. In order to compute the
rest of the answer, students must determine what
percentage of the total cost is fixed cost and what
percentage of the total cost is variable cost. Looking at
Table 2 in the case after adding bad debt expense, students
can figure out what percentage is fixed and what
percentage is variable. While there is some room for
discussion here, most students come up with 18% fixed
and 82% variable. After subtracting fixed cost in step #2,
and no similar costs in step #3, the student should subtract
variable costs from net revenue in step #4 to get a
differential cost loss of about $2,854,000. The rate increase
to break even on full costs would be 408.76% (2501271.90/250), and the rate increase to break even on
differential costs is about 317.18% (250-1042.96/250).
Students should calculate two total costs–the first includes
the original data, and the second includes the offer the
vendor is making. Using the second total cost, students
should calculate the new price needed to break even.
Students should use linear regression (see Problem 12.1) to
project 2015 volumes and changing financial class of
patients.
Students must first determine the original loan amount
that results in a principal balance of $37,000,000 (see
balance sheet) after 20 years. Students can use their bank’s
loan calculator to play a what-if game to determine the
original loan amount, then identify the remaining interest.
Using the loan calculator again, they can calculate the total
interest on the new loan. Students can show a substantial
interest savings for 2015 in their budgets.
Employee Raises
Total points achieved
4
/100
…
Purchase answer to see full
attachment
