The Case Method objectives To facilitate development of the assessment, analytical, and conceptual skills necessary for effective problem solving and...

I need help on these 3 questions6. Review current studies and literature and tell me what percent increases/decreases we can expect commercial rates, medicare rates, and medicaid rates to be over the next three years. What impact will those rate increases/decreases have on our operations?7. Analyze my capitates managed care agreement with the city. Using differential cost analysis for 2006 data, tell me the full cost profit/loss and the differential cost profit/loss. Should we renew the contract for next year at present rates, or should we ask for a rate increase, and, if so, how much of a rate increase do we need to cover our full cost? To cover our differential cost?8. Our radiology department is in violation of the anti-trust statutes by developing a fee schedule using RVUs developed by the radiologist’s professional society. You must establish a new RVU system before we can set FY 2007 rates. The radiology manager has already completed some of the work and I’ll send it over to you (see Table V). Please develop a hospital-specific RVU schedule and, using activity-based costing, assign FY 2007 radiology department rates (total radiology expenses for FY 2006 were $4.5 million). Note: use technician minutes and supply expense to assign direct costs and machine minutes to assign indirect costs.) Please see attachment.