Revenue represents amounts earned by an organization: that is, actual or expected cash inflows due to the organization’s major business. In the case of health care, revenue is mostly earned by rendering services to patients. Revenue flows into the organization is sometimes referred to as the revenue stream.

Lesson 4Revenue represents amounts earned by an organization: that is, actual or expected cash inflows due to the organization’s major business. In the case of health care, revenue is mostly earned by rendering services to patients. Revenue flows into the organization is sometimes referred to as the revenue stream.Step 1· Review the following key terms:o Discounted Fee-for-Serviceo Fee-for-Serviceo Managed Careo Medicaid Programo Medicare Programo Payer Mixo RevenueStep 2· Review Chapter 4· Review PowerPoint· Complete Assignment Exercise 4–2: Revenue Sources and Grouping Revenue (Found in the back of your textbook pp 463.)3424375 hours ago“assignment Exercise 4–2: revenue sources and Grouping revenueThe Metropolis Health System (MHS) has revenue sources from operations, donations, and interest income. The revenue from operations is primarily received for services. MHS groups its revenue first by cost center. Within each cost center the services revenue is then grouped by payer.Required1. Set up a worksheet with individual columns across the top for six revenue sources (payers): Medicare, Medicaid, Other Public Programs, Patients, Commercial Insurance, and Managed Care Contracts.2. Certain situations concerning the Intensive Care Unit and the Laboratory are described below.Set up six vertical line items on your worksheet, numbered 1 through 6. Six situations are described below. For each of the six situations, indicate its number (1 through 6) and enter the appropriate cost center (either Intensive Care Unit or Laboratory). Then place an X in the column(s) that represents the correct revenue source(s) for the item. The six situations are as follows:(1) ICU stay billed to employee’s insurance program.(2) Lab test paid for by an individual.(3) Pathology work performed for the state.(4) ICU stay billed to member’s health plan.(5) ICU stay billed for Medicare beneficiary.(6) Series of allergy tests run for eligible Medicaid beneficiary. Headings for your worksheet:Other Public Commercial ManagedMedicare Medicaid Programs Patients Insurance Care Contracts(1)(2)(3)(4)(5)(6)chaptEr 5Example 5a: Grouping Expenses by cost centerCost centers are one method of grouping expenses. For example, a nursing home may con-sider the Admitting department as a cost center. In that case the expenses grouped under the Admitting department cost center may include:”

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