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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
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.
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