Assume your organization has 100 patients analyzed in the following manner.

15 Medicare patients who pay $2,000 per diagnosis

25 Medicaid patients who pay $1,800 per diagnosis

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 Patients who pay nothing

10 Bad debt patients who pay nothing

Assume those who pay charges will allow a maximum charge of $2,100. Calculate the amount of costs you will need to cut to break even.

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