Cost-Shifting Problem

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January 3rd, 2018

Cost-Shifting ProblemAssume your organization has 100 patients analyzed in the following manner:15 Medicare patients, who pay $2,000 per diagnosis25 Medicaid patients, who pay $1,800 per diagnosis20 managed care patients, who pay charges minus a 20% discount10 managed care patients, who pay charges minus a 25% discount10 private insurance patients, who pay charges10 charity care patients, who pay nothing10 bad debt patients, who pay nothingYour organization’s average cost per patient is $2,000. Calculate the charge necessary to recover your cost.Cost-CuttingUsing the data from the problem above on cost shifting, assume those who pay charges will allow a maximum charge of $2,100. Calculate the amount of costs you will need to cut to break even.In excel

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