You have been asked to establish pricing structure

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You have been asked to establish pricing structure
(TCO 4) You have been asked to establish a pricing structure for radiology on a per-procedure…

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You have been asked to establish pricing structure

You have been asked to establish pricing structure

HSM 340 Final Exam A+

(TCO 4)establish a pricing structure for radiology on a per-procedure basis. Present budgetary 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 $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

PayerVolume %Discount %
Blue Cross204
Unity PPO1510
Kaiser1010
Self Pay540
 50% 

 

What rate must be set to generate the required $80,000 in profit in the preceding example? (Points : 5)

Weighted Discount = (0.4 x 0.04) + (0.30 x 0.10) +….