UNCG Healthcare Cost Shifting & Cutting Techniques Analysis Medical Center Oncology Dept will serve 5719 patients as follows: 1115 Medicare patients who p

UNCG Healthcare Cost Shifting & Cutting Techniques Analysis Medical Center Oncology Dept will serve 5719 patients as follows:

1115 Medicare patients who pay $1450 per diagnosis

1633 Medicaid patients who pay $1610 per diagnosis

925 NC State Health Plan patients who pay charges less 20% discount

1650 Aetna subscribers who pay $1380 per subscriber per year

216 Cigna patients that pay full charges

87 Self-pay patients that pay full charges

64 Charity patients that pay nothing

29 Bad Debt patients that pay nothing

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The cost per patient in the Oncology department is $1525.

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Complete the calculations below and generate a short narrative in memo format (Word document 300 words) to the COO of the Medical Center explaining how and why the Oncology dept that you run will breakeven given the constraints and conditions below.

Utilizing this spreadsheet attached( already formatted for your convenience) where the steps below match the locations in the spreadsheet labeled Step 1-6:

Step 1. Calculate the total projected loss (Place in Cell H14)

Step 2. Calculate the cost-led price to recover the Oncology dept’s cost. (Place in Cell J9)

Step 3. Verify the cost-led price by showing that Cell H26=0

Step 4: Calculate the breakeven cost amount if the Oncology dept is limited to $1325 from its payers that pay charges or charges minus a discount (Place in Cell H38).

Step 5: Calculate the New Cost per Patient Day (Place in Cell J42)

Step 6: Verify the breakeven using the new cost per patient by showing that Cell H50=0.

There is an example at the end of chapter 4 or 5 (depending on the version of the text)

Nowicki 2017. Introduction to the Financial Management of Healthcare Organizations, Seventh Edition, Health Administration Press (5th or 6th edition is acceptable. Some changes will be noted.)