Medicare providers:

x = Average number of patients per provider per day

y = % of patient who are Medicare

z = Average submitted allowable per Medicare patient

a = Working days per year for the provider

(.75(a(z(y*x)))) = Eligible Medicare submitted allowable charges

Exampe:  Providers see’s 20 patients per day, 30% are Medicare and the average submitted allowable per Medicare patient is 55.00.  This provider works 240 days per year.  Based on this provider:  20 * .30 = 6 Medicare patients per day,  6 * 55 = $330 Medicare allowable charges per day, $330.00 * 240 = $79,200 * .75 = $59,400.  This provider would be eligiable for $18,000 in 2011 if all the “meaningful use” criteria is met.

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