SOLVE THE PROBLEM

Next year Holyspirit healthcare organization will serve 100 patients in the following manner

30 Medicare Patients who pay $850/Diagnosis

25 Medicaid patients who pay $900 per diagnosis

15 managed care who pay charges minus 20% discount

15 managed care patients who pay $700 per subscriber

5 private insurance patients who pay charges

5 bad debt patients who pay nothing

5 indigent patients who pay nothing

Holyspirits cost will be $1,000 per patient

Assume Medicare payments are 70% of charge

A. Calculate the charge necessary to cover ABCs cost

B. Calculate the charge necessary if the total projected loss assuming charge per patient equals cost per patient