During the current year, St.Mary's Hospital a not-for-profit entity earned, based on its normal billing rate, $1 million in patient service revenues.Many of these patients belong to a health plan that has an established pay schedule.Based on the specific services rendered to members of the plan, the hospital estimates that $.05 million will not be collectible from the plan or the patient.Some of the patients are Hospital employees.These employees are given a 50% discount on the services rendered.Employee discounts for the current year total $.01 million.Some of the patients are uninsured and the hospital estimates that, of the amount billed to the uninsured patients, $.2 million will not be collectible bad debts.The amount of net patient service revenues for St.Mary's Hospital for the current year is

Question

Quizplus · Accepted Answer

The net patient service revenues for the hospital can be calculated as follows:
Total billed amount = $1 million
Amount not collectible from health plan/patient = $0.05 million
Net billed amount = $1 million - $0.05 million = $0.95 million
Employee discounts = $0.01 million
Net billed amount after employee discounts = $0.95 million - $0.01 million = $0.94 million
Amount not collectible from uninsured patients = $0.2 million
Net patient service revenues = $0.94 million - $0.2 million = $0.74 million. 
Therefore, the correct answer is B)$.94 million.

During the Current Year, St