United Healthcare currently only allows its patients to receive total knee replacements in an inpatient setting. For each total knee replacement, United Healthcare is contracted to pay a flat $30,000 case-rate. The costs of the inpatient encounter are as follow: b. Suppose United Healthcare changes its medical policies to allow for total knee replacements to occur in outpatient settings. 

If the costs are reduced what new flat case-rate should be negotiated such that the system nets the same operating income (profit) as calculated?

Answer rating: 100% (QA)

To calculate the new flat caserate that should be negotiated we need to use the following formula Ne... View the full answer