Chapter 7

Problem 4 Rate Setting

Formula: Total projected cost / total projected hours of use see page 191

a. Hourly Rate Setting Calculate the rate to recover costs

Total projected cost of PT $150,000

Total projected hours of use 1,600

See page 194 for steps

b. Surcharge Rate Setting for Patient Transportation Service Calculate the rate to charge to recover costs

Total projected costs $125,000

Costs of transports billed to patients $ 75,000

Number of patient transports 1,200