For the following four problems, start with the price setting example from the text The initial assumptions are provided in the table below Total cost $100,000 Total volume 1,000 Average cost $100 Payer volumes Medicare (payment rate $95) 400 Medicaid (payment rate $75) 100 Managed Care 1 (payment rate $110) 300 Managed Care 2 (pay 80 of charges) 100 Uninsured (pay 10 of charges) 100 Total all payers 1,000 Desired net income $5,000 Start with the original assumptions The hospital is facing pressure from public interest groups to control the prices it charges to the uninsured Assume that the hospital is able through various efficiencies to cut its per visit cost by 5 It also negotiates a 7 increase with managed care plan 1 Assuming all other factors are unchanged, what is the new required price

The Answer is in the image, click to view ...

Question: For the following four problems, start with the price-setting example from the text. The initial assumptions are provided in the table below. Total cost $100,000

For the following four problems, start with the price-setting example from the text. The initial assumptions are provided in the table below.

Total cost	$100,000
Total volume	1,000
Average cost	$100

Payer volumes
Medicare (payment rate = $95)	400
Medicaid (payment rate = $75)	100
Managed Care # 1 (payment rate = $110)	300
Managed Care # 2 (pay 80% of charges)	100
Uninsured (pay 10% of charges)	100
Total all payers	1,000

Desired net income	$5,000

Start with the original assumptions. The hospital is facing pressure from public-interest groups to control the prices it charges to the uninsured. Assume that the hospital is able through various efficiencies to cut its per-visit cost by 5%. It also negotiates a 7% increase with managed-care plan #1. Assuming all other factors are unchanged, what is the new required price?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Original Assumption: For the following four problems, start with the price-setting example from the text. The initial assumptions are provided in the table below: Total cost $100,000 Total volume...

re, select * then , and drag to the Favorites Bar folder. Or import from another br r. Import favorites Medicare and Medicaid presently account for 50% of the volume. The hospital wishes to reduce...

Using the questions below, can you provide samples that I can follow to resolve similar questions? For the following three problems, start with the price-setting example from the text. The initial...

Directions: Use the following information to solve the two problems that are listed below. 1. Please use a cover page including your name, date, instructor, and course. 2. For the following problems,...

For the following problems, start with the price - setting example from the text. The initial assumptions are provided in the table below. Show your formula and variables for formula in your answers...

For the following problem, start with the price-setting example from the text. The initial assumptions are provided in the table below: Total cost $100,000 Total volume 1,000 Average cost $100 Payer...

Week 2 Price and Revenue Determination All Groups For the following Scenarios, start with the price-setting example from the text. The initial assumptions are provided in the table below. Total cost...

show your work using the formula I provided QUESTION 1 5 points Save Answer Start with the price-setting example from the text. The initial assumptions are provided in the table below. Total cost...

Show your work to find the answer QUESTION 1 5 points Save Answer Start with the price-setting example from the text. The initial assumptions are provided in the table below. Total cost $100,000...

What is meant by postretirement benefits, and what is the primary issue in accounting for their costs?

Multiple Choice Questions The following questions deal with independence of auditors. Choose the best response. a. The operational auditor's independence is most likely to be compromised when the...

3 . A customer initiates a fund transfer of RM 5 , 0 0 0 from their savings account to a credit card account using an online banking platform. The system ensures that the transfer is successful only...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

4. To what extent do you think measures of a countrys wellbeing should be included when comparing the performance of countries? Should there be something like the balanced scorecard, discussed in...

2. In your opinion do you think that measures of social performance should be considered when deciding managers pay? If so what measures should be used?

2. Obtain a copy of the safety policy for either your college or your workplace. a. Use this to identify the roles of various people in the organisation in relation to health and safety. b. Use the...