Question
Cost-Shifting Self-Quiz Problem: Assume your organization has 100 patients analyzed in the following manner: 15 Medicare patients, who pay $2,000 per diagnosis 25 Medicaid patients,
Cost-Shifting Self-Quiz 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.alculate the charge
Using the practice problem on cost shifting, assume that those payers that pay charges, or charges minus a discount, limit XYZs charges to $1,050 per patient. Calculate the amount of costs that XYZ will need to cut, or cover with additional revenues, to break even (realize no profit or loss).ssary to recover your cost.
Costs are projected to be $2,000 per patient | |||||
Required calculate the charge necessary to recover ABC's cost | |||||
Reimbursement | |||||
Class | cases | costs | charges | (Collection) | Profit( Loss) |
Medicare | 15 | 30,000 | 30,000 | - | (30,000) |
Medicaid | 25 | 50,000 | 50,000 | - | (50,000) |
MC#1 | 20 | 40,000 | 40,000 | - | (40,000) |
MC#2 | 10 | 20,000 | 20,000 | - | (20,000) |
Private | 10 | 20,000 | 20,000 | - | (20,000) |
Charity | 10 | 20,000 | 20,000 | - | (20,000) |
Bad Debt | 10 | 20,000 | 20,000 | - | (20,000) |
- | |||||
100 | 200,000 | 200,000 | - | (200,000) |
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