Part Two: Feel free to consult any of your classmates for this part only.

Directions: Please review each of the steps in Problem 5.1. p. 115-6. and use as a guide to complete the problem below.

Solve the following Cost-shifting problem.

A. Cost-shifting

Next year XYZ Healthcare Organization will serve 100 patients analyzed in the following manner:

15 Medicare patients who pay $2000 per diagnosis

25 Medicaid patients who pay $1800 per diagnosis

20 managed care patients who pay charges minus a 15% 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

Next year XYZ's average costs will be $2,000 per patient.

Calculate the charge necessary to recover XYZ's cost.

Financial Class	No.	Costs	Charges	Collections	Profit
Medicare
Medicaid
MC #1
MC#2
Private
Charity
Bad debt