Next year ABC healthcare organization will serve 100 patients in the following manner
30 Medicare Patients who pay charges less 30%/diagnosis
20 Medicaid patients who pay charges less 30% per diagnosis
20 Self pay who pay charges minus 20% discount
15 managed care patients who pay $700 per subscriber
5 private insurance patients who pay charges
5 bad debt patients who pay nothing
5 indigent patients who pay nothing
ABC’s VC cost is $500 per patient
ABC’s fixed cost is $50,000 per year
ABC’s charges are $1,500 per patient
Other revenue is $30,000
Depreciation is $100,000
Calculate the increase in volume necessary to cover ABC’s cost