Cost-To-Charge Ratio (CCR) Method Assignment Help
7.1 the following methods used to estimate the cost of individual services:
- Cost-to-charge ratio (CCR) method
- Relative value unit (RVU) method
- Activity-based costing (ABC) method
7.4 Explain the essential differences between full cost pricing and marginal cost pricing strategies.
7.5 What would happen financially to a health services organization over time if its prices were set at
- Full costs?
- Marginal costs?
7.2 The audiology department at Randall Clinic offers many services to the clinic’s patients. The three most common, along with cost and utilization data, are as follows: remainder of problem on screenshot
7.6 Assume that a primary care physician practice performs only physical examinations. However, there are three levels of examination—I, II, and III—that vary in depth and complexity. An RVU analysis indicates that a Level I examination requires 10 RVUs, a Level II exam 20 RVUs, and a Level III exam 30 RVUs. The total costs to run the practice, including a diagnostic laboratory, amount to $500,000 annually, and the numbers of examinations administered annually are 2,400 Level I, 800 Level II, and 400 Level III.
- Using RVU methodology, what is the estimated cost per type of examination?
- If the goal of the practice is to earn a 20 percent profit margin on each examination, how should the examinations be priced?
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