Revenue Determination: Mike Smith who works for a local well star clinic is given the following task: determine the price to charge for patients who are covered by Managed care # 2 plan in order to meet the margin target. Assumptions are listed as the followings: Reimbursement Rate Total Cost Total Volume $100,000 1000 40% 10% 30% $95/visit $75 $110 Patient group Medicare Medicaid Managed Care #1 plan Managed Care #2 Plan Uninsured 15% ??? 5% 10% of the charge on Managed Care #2 plan 186 words English (United States) Focus (Dollar amounts are measured in thousands) Assume that reimbursement rate from Managed care#2 is 90% of the charges charged by the clinic. Answer the following questions for Mike: 1. What price should the clinic charge for Managed Care #2 plan in order to break even? 2. What price should the clinic charge for Managed Care #2 plan in order to make a profit of 5 million dollars? 3. How sensitive is the price charge to volume change? (Hint: come up with several scenarios of increased/decreased total volumes, different volume composition in terms of different percentages of client groups etc. BE CREATIVE) English (United States Focus