Healthcare price setting

Medicare and Medicaid presently account for 50% of the volume. The hospital wishes to reduce its dependence on government payers. Assume the Medicare volume is reduced to 380 patients and medicaid volume is reduced to 90 patients. The volume from managed care plan rises to 320 patients from 300. The volume from managed care plan increases to 110 patient. Thus, total volume is unchanged at 1,000 visits. What is the new price necessary assuming all other factors are unchanged?

Explanation & Answer

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