Chapter $5$: Third$-$Party Payment

Cost$-$Shifting Practice Problem

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 care patients, who pay nothing

$10$ bad debt patients, who pay nothing

Your organization's average cost per patient is $$2,000$ per patient. Calculate the charge necessary to recover your cost.

Cost Cutting Practice Problem

Using the data from the cost$-$shifting practice problem $($see above!$),$ 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.