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Hi, Can anyone help me to answer the Question below - even if it with a similar problem. Question: Using the questions below, can you provide samples...

Hi,

Can anyone help me to answer the Question below - even if it with a similar problem.

Question: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 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

6.  Start with the original assumptions. Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan #2 (MC#2) wants to pay a lower cost per case and is willing to send 250 more patients (350 total from MC#2) to the clinic in return for a rate of $110 per case. Assume that the average cost per case drops to $90 due to the economies of scale. All other assumptions are unchanged. What is the new required price?

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