Reference no: EM131829402
GRADED PROBLEMS - INSTRUCTIONS AND WORKSHEET
PROBLEM 1
We have given you all the fees, cost and volumes to calculate the price setting details to make sure the organization makes a Net profit of $5000.
Cost:
Total Cost: $100,000
Total Volume: 1,000
Average Cost: $100
Payer Volumes _ Patient Volume
Medicare (payment rate=$95) 380
Medicaid (payment rate=$90) 100
Managed Care #1 (payment rate = $110) 310
Managed Care #2 (pays 80% of Charges) 110
Uninsured (pay 10% of charges) 100 image?w=48&h=1&rev=1&ac=1
Total Volume 1,000
Desired Net Income $5000
Formula and Calculations:
Step 1: Calculate the "loss on the fee schedule", show all your work to assure partial and full credit
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Provide calculations and answers below for step 1
Step 2: Insert losses and other known figures in the top portion (numerator) of the formula and calculate
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Provide calculations and answers below for step 2
Step 3: Calculate the bottom portion (denominator) of the formula (We will give the figures for the average discount, but look how we need to consider the charge payers discount in our formula)
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
We have completed part of this for students.
A (1- ((110/210 x .20) + (100/210 x .90)) = _____
Step 4: Calculate the final price for a service
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Final Price = __________________________
PROBLEM 2
We have given you all the fees, cost and volumes to calculate the price setting details to make sure the organization makes a Net profit of $5000.
Cost:
Total Cost: $94,000
Total Volume: 940
Average Cost: $100
Payer Volumes _ Patient Volume
Medicare (payment rate=$90) 350
Medicaid (payment rate=$100) 100
Managed Care #1 (payment rate = $110) 310
Managed Care #2 (pays 80% of Charges) 80
Uninsured (pay 10% of charges) 100 image w=48&h=1&rev=1&ac=1
Total Volume 940
Desired Net Income $5000
Formula and Calculations:
Step 1: Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Provide calculations and answers below for step 1
Step 2: Insert losses and other known figures in the top portion (numerator) of the formula and calculate
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Provide calculations and answers below for step 2
Step 3: Calculate the bottom portion (denominator) of the formula (We will give the figures for the average discount, but look how we need to consider the charge payers discount in our formula)
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
We have completed part of this for students.
A (1- ((80/180 x .20) + (100/180 x .90)) = _______
Step 4: Calculate the final price for a service
Price = (Average cost + ((Required net income + loss on fee-scheduled payers)/Volume of charge payers))/(1 - Average discount experienced on charge payers)
Final Price = _______________________.