Next year Holyspirit healthcare organization will serve 100 patients in the following manner
30 Medicare Patients who pay $850/diagnosis
25 Medicaid patients who pay $900 per diagnosis
15 managed care who pay charges minus 20% discount
15 managed care patients who pay $700 per subscriber
5 private insurance patients who pay charges
5 bad debt patients who pay nothing
5 indigent patients who pay nothing
Holyspirit’s cost will be $1,000 per patient
Assume Medicare payments are 70% of charge
A. Calculate the charge necessary to cover ABC’s cost.
B. Calculate the charge necessary if total projected loss assuming charge per patient equals cost per patient.