Analyze the CEO's managed care agreement with the city. Using differential

cost analysis, what is the full cost gain/loss and the differential cost gain/loss

for two scenarios: keeping the agreement or killing the agreement? (Use FY

2023's financials.) In the event that the city will negotiate a rate increase, what

percent increase do we need to cover our full costs, and what percent increase do we need to cover our differential costs? What is your recommendation?

PCCH Patient Volumes by Inpatient/Emergency : Inpatient days - 121,624 Emergency visits - 18,500

PCCH Percentage of Total Patient Days by Financial Class Medicare 36 Medicaid 23 Private pay 5 Managed care (discounted) 25 Managed care (capitated) 5 Bad debt 3 Implicit price 1 Charity care 2

PCCH Patient Days by Financial Classification FY 2023

Patient Days | Medicare| Medicaid | Private | Disc. | Cap. | Bad Debt |IP |Charity |Total Medical 28,023 |8,596 |2,736 |10,838| 877 | 2,517| 839| 1,296| | 55,722 Surgical 10,946 6,102 547 4,280 2,164 536 179 536 25,290 ICU/CCU 2,189 1,276 304 1,384 272 76 25 72 5,598 Psychiatric 2,627 1,736 730 4,344 852 150 50 164 10,653 Obstetric 0 4,372 791 4,848 972 162 54 156 11,355 Pediatric 0 5,892 973 4,712 944 208 69 208 13,006 Total Visits 43,785 27,974 6,081 30,406 6,081 3,649 1,216 2,432 121,624 Outpatient Services Emergency 3,957 4,687 4,378 2,177 925 1,446 185 745 18,500