For the next two problems, you will be expected to conduct the Cost Shifting and Cost Cutting Problem on page 137 in your text. A spreadsheet has been uploaded into Blackboard to assist you with this exercise.

After conducting the cost-shifting analysis, what is the necessary charge per patient that is necessary to recover your costs?

Assume:

15Medicare patients, who pay $2,000per diagnosis

25 Medicaid patients,who pay$1,800per diagnosis

20Managed Care patients, who pay charges minus 20%

10Managed Care patients,who pay charges minus 25%

10Private Insurance patients, who pay charges

10Charity Care patients,who pay nothing

10Bad Debt patients, who pay nothing

Average cost per patient is $2,00