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Next year, Margin Healthcare Organization will serve 5 0 0 , 0 0 0 patients analyzed in the following manner: 2 0 % Medicare Patients,

Next year, Margin Healthcare Organization will serve 500,000 patients analyzed in the following manner:
20% Medicare Patients, who pay $1625 per diagnosis;
30% Medicaid patients, who pay $1150 per diagnosis;
20% managed care patients, who pay charges minus a 20% discount:
15% managed care patients, who pay charges minus a 25% discount:
5% private insurance patients, who pay charges
5% charity care patients, who pay nothing
5% bad debt patients, who pay nothing
Next year, Main's costs will be $1,550 per patient.
Question 1. Calculate the charge necessary to recover Main's costs.
Question 2. Using the same scenerio, assume that those payers that pay charges, or charges minus a discount, limit Main's charges to $1,800 per patient. Calculate the amount of costs that Main will need to cut, or cover with additional revenues, to break even ( realize no profit or loss). Excel formate answer please.

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