Reference no: EM13340712

Estimate the variable cost per DRG 209 using the departmental cost/charge ratios and variable cost percentages.

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

Budgeted Procedures          10,000

Budgeted Cost                $300,000

Desired Profit                 $100,000

It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

  Payer              Volume %       Discount %

Blue Cross               10                      4

 Unity PPO                25                    10

Kaiser                      10                    10

Self Pay                     5                    40

                              50%