Cost-Shifting,

assume your organization has 100 patients analyzed in the manner:

15 Medicare Patients, who pay $2000 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 patents, who pay nothing

10 bad debt patientswho pay nothing.

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

Using the answer to the problem on cost shifting, assume those who pay charges will allow a maximum charge of $2,100. Calculate the amount of the amount of costs you will need to cut to break even.