incorrect. the information is repeated. the questions are different.

You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below: Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below: Payer Volume % Discount % Blue Cross 20 4 Unity PPO 15 10 Kaiser 10 10 Self Pay 5 40 50% What rate must be solto generate the required $80.000 in profit in the preceding examplo? Hint: Use the formula below based on the Rato Setting formula in Chapter 16 Weighted Discount = 0.4*0.04) + (0 300.10)+(0.20 0.10) + (0.10 *040) = 0.106 Price = ($400,000 + 10,000) + [($80,000 + 4,000 ($40.00 - $38.00)) - 5,000] 1 - 0.106 Solve the price equation for the answer then use these formulas in the next 2 questions. Use the following information for problems 8-10. You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below: Volume % Discount % Blue Cross 20 Unity PPO 15 10 Kaiser 10 10 Self Pay 40 50% If the forecasted volume increased to 12,000 procedures and budgeted costs increased to $440,000, while all other variables remained constant, what price should be established? Hint: Remember to use the price formula from the prior question and change values as needed Payer 4 5 Use the following information for problems 8-10 You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below: Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized bolow Payer Volume % Discount % Blue Cross 20 Unity PPO 15 10 4 Kaiser 10 10 Self Pay 40 509 Assume that the only change in the original example data is that Blue Cross raises their discount to 20 percent What price should be sot? Hint: Remember to use both the Weighted Discount and the price formulas from the prior question and change values as needed You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below: Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below: Payer Volume % Discount % Blue Cross 20 4 Unity PPO 15 10 Kaiser 10 10 Self Pay 5 40 50% What rate must be solto generate the required $80.000 in profit in the preceding examplo? Hint: Use the formula below based on the Rato Setting formula in Chapter 16 Weighted Discount = 0.4*0.04) + (0 300.10)+(0.20 0.10) + (0.10 *040) = 0.106 Price = ($400,000 + 10,000) + [($80,000 + 4,000 ($40.00 - $38.00)) - 5,000] 1 - 0.106 Solve the price equation for the answer then use these formulas in the next 2 questions. Use the following information for problems 8-10. You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below: Volume % Discount % Blue Cross 20 Unity PPO 15 10 Kaiser 10 10 Self Pay 40 50% If the forecasted volume increased to 12,000 procedures and budgeted costs increased to $440,000, while all other variables remained constant, what price should be established? Hint: Remember to use the price formula from the prior question and change values as needed Payer 4 5 Use the following information for problems 8-10 You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below: Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized bolow Payer Volume % Discount % Blue Cross 20 Unity PPO 15 10 4 Kaiser 10 10 Self Pay 40 509 Assume that the only change in the original example data is that Blue Cross raises their discount to 20 percent What price should be sot? Hint: Remember to use both the Weighted Discount and the price formulas from the prior question and change values as needed