Pricing structure for radiology on per-procedure basis

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Reference no: EM131908225

Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below: Budgeted procedures: 10,000 Budgeted cost $400,000 Desired profit $80,000 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. The remaining charge payers are summarized below: Payer Volume% Discount % Blue Cross 20 4 Unity PPO 15 10 Kaiser 10 10 Self-pay 5 40 50% Question: #2 What rate must be set to generate the required $80,000 in profit in the preceding example?

Reference no: EM131908225

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