Question: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted

You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below:

Budgeted procedures: 10,000

Budgeted cost $400,000

Desired profit$80,000

It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

Payer Volume %Discount %

Blue Cross204

Unity PPO1510

Kaiser1010

Self Pay540

____________

50%

Question: What rate must be set to generate the required $ 80,000 in profit in the preceding example? Can someone please help me with this calculation. Please explain in detail you answer and calculation so that I can study it. I am trying hard to understand this process. Thank you.

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!

7-2. An engineer suspects that the surface finish of metal parts is influenced by the type of paint used and the drying time. She selects two drying times-20 and 30 minutes-and uses two types of...

Question: #1 Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth rate in new equity will increase because: (please discuss the reason...

Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000...

You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000 Desired profit...

Class, 1. Activity: I have selected the 6th Home Work Assignment (HWA) from the material in chapter 13 and 16 in our text, please complete the assignment and post your responses to blackboard....

2. Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000...

Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000...

Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth rate in new equity will increase because: (please discuss the reason for your...

Q 2. A communication line having a bandwidth of 2200 Hz is deployed for data communication. The Signal to Noise ratio supported by the channel is 3600. What will be the capacity for this channel? [5...

State three types of differences that might be observed in the confirmation of accounts receivable that do not constitute misstatements. For each, state an audit procedure that will verify the...

Develop and present a short plan on how you can successfully return to school and continue to function in all your required roles in your work and your home.

The hollow tube is pivoted about a horizontal axis through point O and is made to rotate in the vertical plane with a constant counterclockwise angular velocity = 3 rad /sec. If a 0.2-lb particle is...

Given the series RLC circuit in fig 11.36 if R=10ohm , find the values of L and C such that the network will have a resonant frequency of 100 kHz and a bandwidth of 1kHz. wW V(t)

Computational metrology deals with algorithms for measuring things, such as manufactured parts, and one of the standard algorithms is to determine the flatness of an edge of a manufactured part based...

Describe some bargaining interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or downstream customers), or between internal...

Using Exhibit 28.4 as a guide, describe the computation of a fiduciary entitys accounting income, taxable income, and distributable net income. Exhibit 28.4 EXHIBIT 28.4 Accounting Income,...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

The organization just described is obviously a very toxic one, where failure has become commonplace and even the CEO is looking to abandon the firm at the first opportunity. Based on the information...

What organizational issues can you identify from the case study?

How would you define the communication style of the project managers and individual team members?