Answer to both tabs located on the spreadsheet. 2 problems per tab.

Expert Answer Problem from Chapter 4 page 95 Name:____________ Cost shifting problem This file has 2 tabs, click on tabs on bottom of screen Step 1: Calculate the total projected loss by assuming the charge per patient equals the cost per patient. Next year ABC healthcare organization will serve 100 patients analyzed in the following manner: 15 Medicare patients who pay $2000 25 Medicaid patients who pay $1800 20 managed care patients who pay charges minus a 20% discount 10 managed care patients who pay charges minus a 25% discount 10 private insurance patients who pay charges 10 charity care who pay nothing 10 bad debt patients who pay nothing Costs are projected to be $2,000 per patient Required calculate the charge necessary to recover ABC's cost Class Medicare Medicaid MC#1 MC#2 Private Charity Bad Debt cases costs charges 15 25 20 10 10 10 10 30,000 50,000 40,000 20,000 20,000 20,000 20,000 30,000 50,000 40,000 20,000 20,000 20,000 20,000 100 200,000 200,000 Reimbursement (Collection) - New charge required Profit( Loss) (30,000) (50,000) (40,000) (20,000) (20,000) (20,000) (20,000) (200,000) $6,970 Use the new charge in the calculations Class Medicare Medicaid MC#1 MC#2 Private Charity Bad Debt cases costs 15 25 20 10 10 10 10 30,000 50,000 40,000 20,000 20,000 20,000 20,000 100 200,000 charges Reimbursement (Collection) Profit( Loss) (30,000) (50,000) (40,000) (20,000) (20,000) (20,000) (20,000) - (200,000) 06/12/2017 qattachments_6e7554b60625a4793d3de6b455d9204217ecea4f.xlsx Problem from Chapter 4 page 95 Name:____________ Cost cutting problem This file has 2 tabs, click on tabs on bottom of screen Step 1: Calculate the total projected loss by assuming the charge per patient equals the cost per patient. Next year ABC healthcare organization will serve 100 patients analyzed in the following manner: 15 Medicare patients who pay $2000 25 Medicaid patients who pay $1800 20 managed care patients who pay charges minus a 20% discount 10 managed care patients who pay charges minus a 25% discount 10 private insurance patients who pay charges 10 charity care who pay nothing 10 bad debt patients who pay nothing Assume maxium allowable charge of $2,100 per patient Costs are projected to be $2,000 per patient Required calculate the amount of costs you will need to cut to break even Class Medicare Medicaid MC#1 MC#2 Private Charity Care Bad Debt cases costs charges 15 25 20 10 10 10 10 30,000 50,000 40,000 20,000 20,000 20,000 20,000 31,500 52,500 42,000 21,000 21,000 21,000 21,000 100 200,000 210,000 Reimbursement (Collection) Profit( Loss) (30,000) (50,000) (40,000) (20,000) (20,000) (20,000) (20,000) - (200,000) Current cost per patient = 2000 New cost required per patient= (based on collection total) Use the new cost in the calculations Class Medicare Medicaid MC#1 MC#2 Private Charity Care Bad Debt cases costs 15 25 20 10 10 10 10 100 charges Reimbursement (Collection) 31,500 52,500 42,000 21,000 21,000 21,000 21,000 - 210,000 Profit( Loss) - - - 06/12/2017 qattachments_6e7554b60625a4793d3de6b455d9204217ecea4f.xlsx