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Cost - Shifting Practice Problem Assume your organization has 1 0 0 patients analyzed in the following manner: 1 5 Medicare patients, who pay $

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 organizations 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.

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