You have been asked to set a rate for a Surgical-center. Costs are budgeted to be $4,000,000. Per year for projected surgical procedures of 7,000. The Surgical-center expects that 50 percent of its procedures will be Medicare and that Medicare will pay $550 per procedure. The remainder will be charge payers at an expected discount rate of 29 percent.
Question: If a profit of $400,000 is required, what rate per procedure is required?
