Question
healthcare provider offers a single service to its patients, and the patients are covered by only two different third parties. Payer 1, Medicare, represents 50%
healthcare provider offers a single service to its patients, and the patients are covered by only two different third parties. Payer 1, Medicare, represents 50% of the patients and pays a fixed fee of $180per patient. Payer 2, a Commercial Insurer,represents 40% of the patients and pays 80% of the provider's gross charge. The remaining patients are Charity Care patients who do not pay for their services. The provider treats 8,000 patients per month. The fixed costs of the provider each month is $620,000, and their variable cost per patient is $90. The provider desires to set its gross charge per patient to achieve a profit, or net income, of $20,000for the month.
a.Set up an Algebraic expression, with "p" being the gross charge (price) of the service to each patient being seen in the month, to solve this problem.
b.Solve the problem finding the Gross Price to be charged
c.How many charity patients does the organization treat per month?
d.What is the grand total sum of payments that the Commercial Insurer pays for all its patients in a month?(Note, this is not the total for one patient, but instead it is the total for all their patients together in the month)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started