Assume your organization has 100 patients analyzed in the following manner. 15 –

Question

Assume your organization has 100 patients analyzed in the following manner.

15 – Medicare patients who pay $2,000 per diagnosis

25 – Medicaid patients who pay $1,800 per diagnosis

20 – Managed Care patients who pay charges minus a 20% discount

10 – Managed Care patients who pay charges minus a 25% discount

10 – Private insurance patients who pay charges

10 – Charity Patients who pay nothing

10 – Bad debt patients who pay nothing

Your organization’s average cost per patient is $3,750. Calculate the charge necessary to recover your cost. See cost-shifting problem Provide your answers in Microsoft Excel and show all of your work.

Explanation / Answer

TOTAL NO.OF PATIENTS=100

COST PER PATIENT=$3,750

TOTAL COST TO BE RECOVERED=$3,750*100=$3,75,000

LET THE CHARGE FROM EACH PATIENT BE X

PAYMENT RECEIVED:

THEREFOR $75,000+24.5X=$3,75,000

24.5X=3,00,000

X=$12,245

THE CHARGE NECESSARY TO RECOVER THE COST IS $ 12,245

NO.OF PATIENTS AMOUNT($) 15 30,000 25 45,000 20 20*X-20%=16X 10 10*X-25%=7.5X 10 X 10 - 10 - TOTAL 75,000+24.5X

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