2020/2021HSM 340 Week 4 Midterm Exam 1.doc
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(TCO 4)Based on the information below, assume that the only change in the original example data is that Blue Cross raises their discount to 20 percent. What price should be set? 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 $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume & 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 20 4 Unity PPO 15 10 Kaiser 10 10 Self Pay 5 40 50% Student Answer: 40% x 10,000= 4,000 procedures 4,000 x $38.00= 152,000 10% x 10,000=1,000 procedures 4,150 x P = 4,150P (152,000+1,000P+4,150P)-400,000 = 80,000 1,000P + 4,150P = 80,000 – 152,000 + 400,000 5,150P = 328,000 P = $63.69 Instructor Explanation: Points Received: 8 of 10 [Show More]
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