Need Finance Homework Help? Ask an Expert

# 2. Use the information and table below to solve problems

Customer Question
a-d. For the following four...
2. Use the information and table below to solve problems a-d. For the following four problems, start with the price-setting example from the text or see the table below. The initial assumptions are provided in the table below: Total cost \$100,000 Total
volume 1,000 Average cost \$100 Payer volumes Medicare (payment rate = \$95) 400 Medicaid (payment rate = \$75) 100 Managed Care # ***** (payment rate = \$110) 300 Managed Care # ***** (pay 80% of charges) 100 Uninsured (pay 10% of charges) 100 Total all payers 1,000
Desired net income \$5,000 Price-Setting Example (page 141) Total Cost \$100,000 Total Volume 1,000 Average cost \$100 Payer volumes Medicare (payment rate = \$95) 400 Medicaid (payment rate = \$75) 100 Managed Care #1 (payment rate = \$110) 300 Managed Care #2
(pay 80% of charges) 100 Uninsured (pay 10% of charges) 100 Total all payers 1,000 Desired net income \$5,000 A. Medicare and Medicaid presently account for 50 percent of the volume. The hospital wishes to reduce its dependence on government payers. Assume
that Medicare volume is reduced to 380 patients and Medicaid volume is reduced to 90 patients. The volume from managed-care plan #1 rises to 320 patients from 300. The volume from the managed-care plan #2 increases to 110 patients. Thus, total volume is unchanged
at 1,000 visits. What must the new price be, assuming all other factors are unchanged? B. Start with the original assumptions. The hospital is facing pressure from public interest groups to control the prices it charges to the uninsured. Assume that, through
various efficiencies, the hospital is able to cut its per-visit cost by five percent. It also negotiates a seven percent increase with managed-care plan #1. Assuming all other factors are unchanged, what is the new required price? C. Start with the original
assumptions. Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan #2 (MC#2) wants to pay a lower cost per case and is willing to send 250 more patients (350 total from MC#2) to the
clinic in return for a rate of \$110 per case. Assume that the average cost per case drops to \$90, due to the economies of scale. All other assumptions are unchanged. What is the new required price? D. Start with the assumptions in problem (c). Now, assume
that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated. Assume now that the average cost per case drops to only \$95. What is the new required price?
Submitted: 2 years ago.Category: Business and Finance Homework
Show More
Show Less
5/29/2015
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
F. Naz, Bachelor's Degree
Satisfied Customers: 5,381
Experience: Have completed B.COM and CA Finalist
Verified
Customer reply replied 2 years ago
Total Cost \$100,000
Total Volume 1,000
Average cost \$100
Payer volumes
Medicare (payment rate = \$95) 400
Medicaid (payment rate = \$75) 100
Managed Care #1 (payment rate = \$110) 300
Managed Care #2 (pay 80% of charges) 100
Uninsured (pay 10% of charges) 100
Total all payers 1,000
Desired net income \$5,000
C. Start with the original assumptions. Notice that managed care plan #1 receives a much lower price in return for sending a larger volume of patients. Managed care plan #2 (MC#2) wants to pay a lower cost per case and is willing to send 250 more patients (350 total from MC#2) to the clinic in return for a rate of \$110 per case. Assume that the average cost per case drops to \$90, due to the economies of scale. All other assumptions are unchanged. What is the new required price?
D. Start with the assumptions in problem (c). Now, assume that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated. Assume now that the average cost per case drops to only \$95. What is the new required price?
Customer reply replied 2 years ago
Would it be possible to get my answers by 10 pm tonight?
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
Please provide price setting example on page 141 and also mention your deadline in hours from now, thanks.
R
Customer reply replied 2 years ago
I have provided price setting see above. I will repeat it again! can I get the answer by tomorrow morning (by 9 am). If not, I I I will not need your assistance. I have to submit my homework by 10 am. Thank You!
Example on page 141
Total Cost \$100,000
Total Volume 1,000
Average cost \$100
Payer volumes
Medicare (payment rate = \$95) 400
Medicaid (payment rate = \$75) 100
Managed Care #1 (payment rate = \$110) 300
Managed Care #2 (pay 80% of charges) 100
Uninsured (pay 10% of charges) 100
Total all payers 1,000
Desired net income \$5,000
Business Tutor: F. Naz, Bachelor's Degree replied 2 years ago
Sorry unable to do it, thanks.
Customer reply replied 2 years ago
Would it be possible to get my answer by 9 am???
linda_us, Master's Degree
Satisfied Customers: 852
852 Satisfied Customers
Experience: A tutor for Business, Finance, Accounts and other related topics.

linda_us is online now

A new question is answered every 9 seconds

• Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
• Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

## What Customers are Saying:

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around.

EstherWoodstock, NY

Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know.

RobinElkton, Maryland

He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here.

DianeDallas, TX

< Previous | Next >

## Meet the Experts:

linda_us

Master's Degree

852 satisfied customers

A tutor for Business, Finance, Accounts and other related topics.

F. Naz

Bachelor's Degree

5,381 satisfied customers

Have completed B.COM and CA Finalist

Bizhelp

Accountant

260 satisfied customers

BA degree and Certified Public Accountant

214 satisfied customers

dasdasd

Mr. Gregory White

Master's Degree

211 satisfied customers

M.A., M.S. Education / Educational Administration

Brittany

Professional

30 satisfied customers

Dimitry K., Esq.

Doctoral Degree

19 satisfied customers

< Previous | Next >

Related Business and Finance Homework Questions
In the 1980s, when Congress developed the generous
In the 1980s, when Congress developed the generous depreciation methods called ACRS and MACRS, one justification was to encourage business investment in long-lived assets by accelerating much of the d… read more
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Read the attached document.After reading, post your answers and arguments to the following questions:What type of interaction do you see between McDonalds and the society? Consider the four components… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
Read the attached document.Post your answers and arguments for the following questions. Views should be supported by argumentsWhat in your opinion is the best argument for CSR? Why? What in your opini… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
Locate a recent annual report for a public company that
Locate a recent annual report for a public company that includes a disclosure note that describes an investment in a trading security. Explain why this company would report their investment as a tradi… read more
Expert
214 satisfied customers
Could you do variance analysis>? I have an assigment due on
on Variance analysis I need to provide notes on each line item… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
This morning, the hair dryer of one of the students in this
This morning, the hair dryer of one of the students in this class broke. The student, Jane, discussed the problem with her older brother Dick.Dick: Hi, Jane. What happened to your hair dryer? Jane: It… read more
Expert
214 satisfied customers
This question is do today by 4pm. I am able to pay an
This question is do today by 4pm. I am able to pay an additional charge to get it completed asap. I have attached the questions below and the grading rubric. Please follow the directions closely. This… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
For writer F. Naz. This assignment is due saturday 1/13 by
For writer F. Naz. This assignment is due saturday 1/13 by 6pm. I have attached the assignment page and grading rubric. Please read the directions and follow them closely. This is for a healthcare fin… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
Complete assignment as follows: Record the transactions for
Complete assignment as follows: Record the transactions for May 1 through May 31 in a general Journal using the account names listed in the chart of accounts (red tab). Post the entries to general led… read more
Expert
214 satisfied customers
Business Law - Answer each of the following questions in a composition of 10 to 20 sentences:1. Discuss the difference between larceny, embezzlement, and robbery and give an example of each that would… read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
I will need to take the Ashworth College Semester Exam which
I will need to take the Ashworth College Semester Exam which is a series of 50 q's in 3hrs. Accounting. Can i get some help? … read more
Expert
214 satisfied customers
Is there a charge? I just want the answers to the final exam
is there a charge? JA: You just pay a \$5 deposit now and the rest only when you get a reply from the Tutor. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for… read more
GLENN
Master of Mathematics
343 satisfied customers
Use all of the three methods you have learned in class and
Use all of the three methods you have learned in class and take a weighted average of the three methods. Weights are subjective. (CAPM, DCF, bond-yield-plus-risk-premium) FOR TOYOTA MOTORS … read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
How much will it cost it is due at midnight. Compose a 4-6
Compose a 4-6 page report, double-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following: (1) Consumer financing for big-ticket items such as autos and homes; (2) the present and future values of annuities; (3) the NPV calculation; (4) the WACC; (5) corporate earnings ? … read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
What is the answer Marshall, Inc., produces three products
what is the answer Marshall, Inc., produces three products but weekly demand for the three products exceed the available amount of machine time. Following is information about each product: Product A … read more
Carter McBride
LLM
265 satisfied customers
It is an accounting questio (usa taX) need help with this
it is an accounting questio (usa taX) need help with this due by tomorrow . pls write answer question in separate document… read more
Expert
214 satisfied customers
Assignment 1. Plot in Excel the risky asset opportunity set
Assignment 1. Plot in Excel the risky asset opportunity set for Portfolios A & B. Hint: create the following table in excel assuming weights of portfolio A & B in 10 percentage point increments. Then … read more
F. Naz
Bachelor's Degree
5,381 satisfied customers
Manal, I see that you have previously helped someone answer
Hi Manal,I see that you have previously helped someone answer a tax return problem that is very similar to the one I am having trouble with. It is so similar that actually all of the same numbers, the… read more
Expert
214 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less