The president of Gentiva Health Services is considering increasing her number of Medicare patients served next year. However, to do so she must begin to use RNs for client visits, which Medicare reimburses at $45 per visit. An RN costs $35 per hour versus the current cost of $15 for an LPN or nurse’s aide. The president believes she can increase her patient visits by 15% by accepting Medicare patients. She is also aware that if she increases her Medicare patients, the company’s administrative costs will increase by approximately $10,000 per year because of the claims file complexity.
Use the following websites to gather data:
Use the following volumes for your calculations:
Volume for the year:
- Flexible budget: 6,000 visits
- Static budget: 5,945 visits
- Actual budget: 5,889 visits
Prepare a two-page report that addresses the following:
- How many more visits will the company generate if it accepts Medicare patients?
- What would be the estimated profit or loss associated with the Medicare service line?
- Would you recommend that Gentiva Health Services increase its number of Medicare patients served? Why or why not?
The second task is: Business Plan
Review the quarterly report and develop a business plan for the organization for its upcoming financial year. Be sure to include the following in your organized business plan:
- Organization segment
- Marketing segment
- Financial segment
- Projected cash flow statement
- Projected income statement
- Projected balance sheet
Feel free to take liberties with information needed that is not available in the report.
You may find the quarterly report at
Gentiva® Health Services Reports Third Quarter 2014 Revenue and Adjusted EBITDA Results
To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.
- Your assignment should be addressed in an 8- to 10-page document.
- Submit your documents to the Submissions Area by the due date assigned.
Must have 3 or more references with citations!
Along with a reference page in APA format!