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The Bald Eagle Mountain Clinic provides behavioral health counseling for its patients. Bald Eagle Mountain currently treats 1000 patients per month. 20% of the patients

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The Bald Eagle Mountain Clinic provides behavioral health counseling for its patients. Bald Eagle Mountain currently treats 1000 patients per month. 20% of the patients are covered by Medicare. 20% are Medicaid, 40% are fee for service. 10% of the patients pay out of pocket and 10% of the patients do not pay. Medicare pays $45 per visit Medicaid pays $25 per visit The fee for service commercial insurer pays $95 per visit Bald Eagle Mountain Clinic's.Fixed costs are \$17,500 per month. The yariable cost per visit is $40 1) What does Bald Eagle Mountain Clinic need to charge its out of pocket self-pay patients to make $5,000 profit per month overall? 2) Medicaid is switching to a capitated payment system. They do not anticipate any change in utilization of services. Assume the price you determined for out of pocket you determined in Q1 does not change. If Medicaid has 10,000 enrollees, what PMPM do you need to charge Medicaid to make the same $5,000 per month profit as before? 3) What is the impact on your profitability if your Fee for Service Commercial Insurance contract changes the price they are willing to pay to $90

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