Question

You have been asked to create a two-year revenue forecast for the local community health center. You have been provided with the following assumptions:
Year			2017	2018
Total Office Visits			23000	Increase by 6%
Average Billed Charge per visit			$ 152.00	Increase by 5%
Average Insurance Discount per visit			30%	32%
Average Bad Debt per visit			5%	6%	(after insurance discount has been taken)
Other Health Center Revenue			$ 26,000	$ 30,000

			2017		2018
Office Revenue
Visits
Billed charge
Billed
Allowed
Less: Bad Debt Expense
Net Office Visit Revenue
Other HC Revenue
Total Health Center Revenue

Answer 1

	Year	2017	2018
	Total Office visits	23000.00	24380.00
	Average bill charged per visit	$            152.00	$            159.60
	Office revenue	$    3,496,000.00	$    3,891,048.00
Less :	Average Insurance discount per visit	$    1,048,800.00	$    1,245,135.36
Less :	Average Bad debt expense	$      996,360.00	$    1,170,427.24
	Net Office Visit Revenue	$    1,450,840.00	$    1,475,485.40
	Other Health Care Revenue	$        26,000.00	$        30,000.00
	Total Health Center Revenue	$ 1,476,840.00	$ 1,505,485.40

Note : I have changed the preforma slightly for the sake of easy understanding, Hope you will understand

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