Essay About Profitability Ratio And Inpatient Dischargeprofit

Profit Per Inpatient Discharge
Profit per Inpatient DischargeProfit per Inpatient Discharge is a profitability ratio which measures the amount of net profit (addition to the amount of net income) that is earned on each admitted patient in the hospital. This ratio is calculated with the subtracting the total revenue of inpatient from the total operating cost incurs on the inpatient. Furthermore, this net amount is then divided by total number of discharges within the period which results in the amount of profit per discharge of each patient. This ratio is very crucial for the healthcare provide because this enable them to monitor their operating cost by tracing the cost of inpatient or low reimbursement of inpatient and improve their liquidity. This ratio also helps the healthcare providers to anticipate the inpatient profitability which can put healthcare provide in financial trouble. Net Price per Inpatient DischargeNet Price per Inpatient Discharge is another profitability ratio which measures the net revenue earned on each inpatient discharge. This ratio is calculated by dividing the net revenue earned from each patient who is then divided by total number of discharge within the year. This ratio is very crucial for the healthcare providers because it enable them to measure the overall market’s to estimate the value of services provided to inpatient as contrary to the assessment of hospital’s.Gross Price per Outpatient VisitGross price per outpatient visit is another profitability ratio which measures the total gross revenue earned by healthcare per visit of each outpatient. This ratio is calculated by dividing the total revenue earned from outpatient from total number of visit of outpatient. This is another very important ratio for the healthcare providers because it enables them to trace the total gross revenue from total number of vest of outpatient which helps them to implement certain strategies which increases the visit of outpatient i.e. by optimizing the technologies used in hospital or providing higher quality of service. However, the actual change in the market prices is reflected in gross revenue of outpatient comparatively than their actual reimbursement.