Price necessary assuming all other factors are unchanged

Assignment Help Financial Management
Reference no: EM132070888

Medicare and Medicaid presently account for 50% 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 (MC#1) rises to 320 patients from 300. The volume from managed care plan #2 (MC#2) increases to 110 patients. Thus, total volume is unchanged at 1,000 visits. What is the new price necessary assuming all other factors are unchanged?

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 the hospital is able, through various efficiencies, to cut its per-visit cost by 5%. It also negotiates a 7% increase with MC#1. Assuming all other factors are unchanged, what is the new required price?

Reference no: EM132070888

Questions Cloud

Effective management and policy : The most effective impact of investment in health care will come from effective management and policy. From this position, discuss the following:
Dividend payments are not expected to change : What should the share price be if the dividend payments are not expected to change?
Who were his teachers and musical influences : How many siblings did he have, were they musical? Who were his teachers and musical influences?
What is the sustainable growth rate : What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.
Price necessary assuming all other factors are unchanged : Medicare and Medicaid presently account for 50% of the volume. What is the new price necessary assuming all other factors are unchanged?
Evaluate the websites search engine : Evaluate the Website's search engine. Discuss at least two advantages and disadvantages of a customized search engine.
Finance international trade and investment : Discuss the sources of funds to finance international trade and investment.
Rate between usd and ghs be quoted to avoid arbitrage : How should the 6 months rate between USD and GHS be quoted to avoid arbitrage?
What is usually the cause of large tsunamis : What is usually the cause of large tsunamis? Which THREE of the following are true regarding numbers of earthquakes annually

Reviews

Write a Review

Financial Management Questions & Answers

  Find arbitrage opportunity using two european call option

Arguing by contradiction assume that the inequality does not hold and find an arbitrage opportunity using the two European call options

  What is the firm pretax cost of debt

The issue makes annual payments and has a coupon rate of 8.4 percent annually. What is the firm's pretax cost of debt?

  The flotation cost adjusted initial outlay

The Faraway Moving Company is involved in a major plant expansion that involves the expenditure of ?$214 million in the coming year. The firm plans on financing the expansion through the retention of ?$135 million in firm earnings and by borrowing th..

  Cost of building assembly line after taking flotation costs

Suppose your company needs $11 million to build a new assembly line. Your target debt−equity ratio is .45. The flotation cost for new equity is 11 percent, but the flotation cost for debt is only 8 percent. What is your company’s weighted average flo..

  Maturity date is called the bond yield to maturity

The rate of return on a bond held to its maturity date is called the bond's yield to maturity.

  What is the book value per share-earnings per share

What are dividends per share? What are earnings per share? What is the book value per share?

  Executed real estate mortgage

Arkin, the owner of Redacre, executed a real estate mortgage to the Shawnee Bank and Trust Company for $100,000. After the mortgage was executed and recorded, Arkin constructed a dwelling on the premises and planted a corn crop.

  If the sales grew at an average rate

Your mother has been working for a small bookstore for many years. Her sales in the first year were $23,356 and her sales in the last year were $62,034. If the sales grew at an average rate of 5.67 percent per year. How many years did your mother sel..

  Initial cash outlay necessary to replace existing equipment

A company is evaluating the possible replacement of equipment. What is the initial cash outlay necessary to replace the existing equipment?

  How long will it be before you have enough to buy the car

The bank pays 5.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

  What is the company cost of common equity

What is the company’s cost of common equity?

  What is probability that this stock will earn

Based on these returns, what is the probability that this stock will earn at least 25.00 percent in any one given year?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd