Your contract with BigGreen Health Plan expires in $90$ days.

Their negotiator has indicated that because of competition from other plans, they must limit fee increases in the coming year.

Medicare will have a $1\%$ increase next year and Medicaid will remain flat. Your Blue Cross contract does not expire for another year and will remain the same.

You plan to implement a $5\%$ charge increase next year.

Operating expenses are expected to increase $3\%$ next year.

What price must you have from BigGreen Health plan to keep profitability the same as this year? What percentage increase is that new fee?

Swiftcut Surgery Center $--2021$ Statistics

Payer Patients$/$ week Collection$/$ patient

Medicare $30$ $$1,250$

Medicaid $20950$

Blue Cross $71,750$

Big Green Health Plan $251,675$

Private Insurance $475\%$ of charges

Bad Debt $100$

Charity $90$

Total $105$

Charges $$3,250$ per patient

Expenses $$1,400$ per patient