Use the following information in questions 34 through 37 Gen…
Questions
Use the fоllоwing infоrmаtion in questions 34 through 37 Generаl Hospitаl and Magellan Insurance entered into a contract. General Hospital agreed to provide healthcare services to Magellan’s insured lives. General Hospital will be paid for inpatient services on a DRG-basis. Outpatient services will be paid on a fee schedule basis. The contract includes a two-sided shared savings model, with quality indicators. In the prior year, Magellan paid General Hospital $500 million for healthcare services. This year, General Hospital and Magellan agreed to a target of $475 million. General Hospital and Magellan agreed to the following: If actual costs are up to $5 million above or below the target, Magellan retains the cost savings/excess costs If actual costs are $5 million to $10 million above or below target, the savings/excess will be shared equally by General Hospital and Magellan. If actual costs are $10,000,001 to $25,000,000 above or below target, the savings/excess will be shared 75% (General Hospital)/25% (Magellan) Any cost savings/excess costs above $25,000,000 will be retained by Magellan Quality Indicators must be met to share in any cost-savings, and have no impact on shared losses. Indicate the shared savings/shared losses amounts General Hospital should record for each of the following scenarios. Actual costs were $20 million under target, and quality measures were better than goal?