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United Healthcare currently only allows its patients to receive total knee replacements in an inpatient setting. For each total knee replacement, United Healthcare is contracted

United Healthcare currently only allows its patients to receive total knee replacements in an inpatient setting. For each total knee replacement, United Healthcare is contracted to pay a flat $30,000 case-rate. The costs of the inpatient encounter are as follow: b. Suppose United Healthcare changes its medical policies to allow for total knee replacements to occur in outpatient settings. 



If the costs are reduced what new flat case-rate should be negotiated such that the system nets the same operating income (profit) as calculated?

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