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A healthcare provider offers a single service to its patients, and the patients are covered by only two different third parties. Payer 1 , Medicare,
A healthcare provider offers a single service to its patients, and the patients are covered by only two different third parties. Payer Medicare, represents of the patients and pays a fixed fee of $ per patient. Payer a Commercial Insurer, represents of the patients and pays of the provider's gross charge. The remaining patients are Charity Care patients who do not pay for their services. The provider treats patients per month. The fixed costs of the provider each month is $ and their variable cost per patient is $ The provider desires to set its gross charge per patient to achieve a profit, or net income, of $ for the month.
a Set up an Algebraic expression, with being the gross charge price of the service to each patient being seen in the month, to solve this problem. Show this expression on your spreadsheet.
b Solve the problem finding the Gross Price to be charged to achieve the profit target.
c How many charity patients does the organization treat per month?
d What is the grand total sum of payments that the Commercial Insurer pays for all its patients in a month? Note this is not the total for one patient, but instead it is the total for all their patients together in the month
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