Please use Excel Please calculate the new charge needed to shift some of the los
ID: 2539565 • Letter: P
Question
Please use Excel
Please calculate the new charge needed to shift some of the losses to another payer. You will need to show both the initial table to calculate the loss & a second one showing the impact of your new charge. Cost cutting problem below
At your new clinic, you are currently seeing patients for a specialty procedure. The cost to you for this procedure is $1800.
Your breakdown is the following:
25 Medicare patients who pay you $1000 per visit
15 Medicaid patients who pay you $750 per visit
15 Managed Care patients who pay you charges -with a 15% discount
5 Managed Care patients who pay you charges with a 25% discount
15 Private pay patients who pay charges
10 Charity care patients who pay nothing
15 Bad debt patients who pay nothing
Using the same procedure information as in the cost shifting problem, consider that all of the insurance companies paying charges will max out at $1650. How much would you have to cut your cost to break even? Show both overall dollar amount and test your answer in the second table.
Explanation / Answer
Patients
Numbers
Fees
Insurance companies paying
Total fees
Total fees
Medicare patient
25
1000
1650
2650
66250
Medicaid patients
15
750
1650
2400
36000
Managed care patients
15
1530
0
1530
22950
Managed care patient at 25% discount
5
1350
0
1350
6750
Private pay patients
15
1800
0
1800
27000
Charity patients
10
0
0
0
0
Bad debt patients
15
0
0
0
0
Total fees collected
158950
Total cost
Patients
Numbers
Cost
Total cost
Medicare patient
25
1800
45000
Medicaid patients
15
1800
27000
Managed care patients
15
1800
27000
Managed care patient at 25% discount
5
1800
9000
Private pay patients
15
1800
27000
Charity patients
10
1800
18000
Bad debt patients
15
1800
27000
Total cost
180000
Total cost
180000
Less: Total fees
158950
Costs to cut break even
21050
Patients
Numbers
Fees
Insurance companies paying
Total fees
Total fees
Medicare patient
25
1000
1650
2650
66250
Medicaid patients
15
750
1650
2400
36000
Managed care patients
15
1530
0
1530
22950
Managed care patient at 25% discount
5
1350
0
1350
6750
Private pay patients
15
1800
0
1800
27000
Charity patients
10
0
0
0
0
Bad debt patients
15
0
0
0
0
Total fees collected
158950