Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050PT sessions per month. - 500 sessions are performed for commercially insured patients (i.e.

image text in transcribed Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050PT 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 HMO 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 the commercial insurers (i.e. Blue Cross). What price do you need to charge to earn a monthly profit of $20,000 ? A. $188.50 B. $93.50 C. $50 D. $53.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions