Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050 PT sessions per month. • 500 sessions are performed for commercially insured patients (i.e. Blue Cross) that pays on a fee for service basis. • 500 sessions are performed for patients that are members of an HMO that pays PPT on a capitated basis • 50 sessions are provided to underserved patients free of charge as a community benefit • PPT's contract with the HMO covers 10,000 members and pays PPT $5 PMPM. Phlexible Physical Therapy (PPT)'s monthly fixed costs are $20,000 and the variable cost is $35 per session. You are in the process of renegotiating your contract with private insurers. What price do you need to charge to earn a monthly profit of $20,000? O A. $50 B. $93.50 C. $53.50 D. $188.50
Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050 PT sessions per month. • 500 sessions are performed for commercially insured patients (i.e. Blue Cross) that pays on a fee for service basis. • 500 sessions are performed for patients that are members of an HMO that pays PPT on a capitated basis • 50 sessions are provided to underserved patients free of charge as a community benefit • PPT's contract with the HMO covers 10,000 members and pays PPT $5 PMPM. Phlexible Physical Therapy (PPT)'s monthly fixed costs are $20,000 and the variable cost is $35 per session. You are in the process of renegotiating your contract with private insurers. What price do you need to charge to earn a monthly profit of $20,000? O A. $50 B. $93.50 C. $53.50 D. $188.50
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Ma1.
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Transcribed Image Text:Phlexible Physical Therapy (PPT) is a not-for profit company that provides 1,050 PT
sessions per month.
• 500 sessions are performed for commercially insured patients (i.e. Blue Cross) that
pays on a fee for service basis.
• 500 sessions are performed for patients that are members of an HMO that pays
PPT on a capitated basis
• 50 sessions are provided to underserved patients free of charge as a community
benefit
• PPT's contract with the HMO covers 10,000 members and pays PPT $5 PMPM.
Phlexible Physical Therapy (PPT)'s monthly fixed costs are $20,000 and the variable
cost is $35 per session.
You are in the process of renegotiating your contract with private insurers. What price
do you need to charge to earn a monthly profit of $20,000?
A. $50
B. $93.50
O C. $53.50
O D. $188.50
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