Jul 16, 2017

Health Care Services Reimbursement

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Health Care Services Reimbursement


Module 2 - SLP

Health Care Services Reimbursement

Foundation for this assignment

In 2013, the Gastroenterology Clinic of Pearland Medical Center had revenue totaling $14,550,400. The Gastroenterology Clinic costs data for a 12-month period from January 2013 through December 2013 were reported as follows: 


Health Care Services Reimbursement Student name: University name: Health Care Services Reimbursement Find the fixed and variable portion of costs using the high-low method. High low method is among many techniques used in splitting mixed costs to its components of fixed and variable costs. It is the easiest method to understand but least reliable method since it is not accurate. High-low method uses two extreme activities from the actual information such as a certain statistics collection data and the corresponding costs (total) figures (Kinney, 2013). The figures collected are used in finding and breaking down the cost volume formula, which is: Y= a + bx To find total cost first we need to find the variable cost: Variable cost rate = change in costs Change in activity =961,740-825,375 7,020-5,325 =136,365 1,695 = 80.45 dollars per patient. To find the fixed cost, we need to work out: The fixed cost is determined


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