Payor Mix and Reimbursement
Koehler Hospital has the payer mix and payment contract structure as described in the table below.
Assuming the current cost per patient is equal to $3000, calculate the current loss of the Koehler hospital assuming they only charge patients at cost.
Also calculate the charge per patient needed in order to breakeven using the cost shifting method.
Finally, calculate the new cost per patient necessary to break-even using the cost cutting method assuming charges are capped at $3000 per patient
	Payer Mix and Patient Payment Rate Table
	40	Medicare patients pay you at a rate of				$1,800	per diagnosis
	10	Medicaid patients pay you at a rate of				$1,200	per diagnosis
	10	Managed care patients pay at a rate of				25%	discount off charges
	10	Managed care patients pay at a rate of				80%	of charges
	10	Managed care patients pay at a rate of				$1,000	per prescriber per year
	10	Private insurance patients pay you				100%	of charges
	4	self pay patients pay you				100%	of charges
	2	bad debt patients who dont pay at all
	4	charity care patients who don't pay at all
	100	Total Patients