Question
Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050 PT sessions per month. 500 sessions are performed for commercially insured patients
Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050 PT sessions per month. 500 sessions are performed for commercially insured patients (i.e. Blue Cross) that pays on a fee for service basis. 500 sessions are performed for patients that are members of an HM that pays PPT on a capitated basis 50 sessions are provided to underserved patients free of charge as a community benefit PPT's contract with the HMO covers 10,000 members and pays PPT $5 PMPM. Phlexible Physical Therapy (PPT)'s monthly fixed costs are $20,000 and the variable cost is $35 per session. You are in the process of renegotiating your contract with private insurers. What price do you need to charge to earn a monthly profit of $20,000? A. $50 B. $93.50 C. $53.50 O D. $188.50
Step by Step Solution
3.49 Rating (159 Votes )
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 StartedRecommended Textbook for
Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
Students also viewed these General Management questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App