Table 1

Numerator = Average Cost + (Required Net Income + Loss on Medicare & Medicaid Fees - $ of Scheduled Payers from Managed Care Payments)

Denominator = 1 - .55 average discount

What is the required price? Please explain the steps

Total Cost Total Volume Average cost $100,000.00 $1,000.00 $ 110.00 Payer volumes Medicare (payment rate $95) Medicaid (payment rate $75) Managed Care #1(payment rate $110) $ Managed Care #2 (pay 80% of charges) | $ Uninsured (pay 10% of charges) | $ Total all payers 400.00 100.00 300.00 100.00 100.00 S 1,000.00 Desired Net Income S 5,000.00