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You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is provided below: 2. You have been

You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is provided below:

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2. You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is provided below: Budgeted Procedures 10,000 Budgeted Cost $400,000 Desired Prot $80.00!] It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay, on average, $38 per procedure. Approximately 10 percent of the patients are cost payers. Data on the remaining charge payers are summarized below: Payer Volume '55 Discount '56 Blue Cross Unity PPO 1. In the preceding example, what rate must be set to generate the required 3500.000 in profit? 2. If the forecasted volume increased to 12,000 procedures and budgeted costs increased to $440,000. while all other uaahJeLLemained constant. what price should be established? 3. Assume that the only change in the original example data is that Blue Cross raises its discount to 20 percent. What price should be set

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