Total Cost = $100,000.00 Total Volume = $1,000.00 Average Cost = $110.00 Medicare (payment rate = $95) $400 Medicaid (payment rate = $75) $100 Managed Care #1 (payment rate = $110) $300 Managed Care #2 (pay 80% of charges) $100 Uninsured (pay 10% of charges) $100 Total all payers $1,000.00 Desired Net Income $5,000.00 See table above: What is the required price? Numerator = Avg Cost $XXX + [($X,XXX required net income + $X,XXX loss on fee $X,XXX schedule payers) / 200 volume of charge payers] Denominator = 1 - .55 avg discount Required Price = Numerator / Denominator