The revenues received in the month of March amounted to $300,000. The revenue will be realized in cash according to payer percent lag as shown below:
Medicare had 40% of the revenue spread for three months translates to $ 40,000 per month for the months of March, April and May respectively. Medicaid contributed 20% of the revenues spread for three months means $20,000 in the month of March, April and May respectively. Blue Cross provided 15% of the revenues covering two months translating to $22,500 for the months of March and April. Other Insurer's portion in the revenues is 15% for only one month covering the month of March for $ 45,000Self payers contributed 10% of the revenues for two months translating to $15,000 for each of the months of March and April.
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The amount of cash to be realized in the month of May is $ 60,000 as follows $40,000 from Medicare and $20,000 from Medicaid. The month of May will also record revenues from the above-said insurers especially Blue Cross and Other insurers who have a two month lag in payments and self- pay payers who lag their payments for a single month.
