Calculate the gross charge necessary to recover Ortho Inc.’s total cost of operations…. 1 answer below »
1.) Calculate the gross charge necessary to recover Ortho Inc.’s total cost of operations. Be sure to consider United’s “lesser or” clause in their reimbursement rate. Hint: Profit = Total Revenue – Total Cost/ Profit Margin = Total Profit/Total Revenue. 2.) Calculate the gross charge necessary for Ortho Inc.’s to realize a 15% profit margin on its 1,000 patients. 3.) United presents a proposal to your group. They have offered to send an additional 100 patients per year to your group at a reduced rate of $1,200 per case. This rate would only pertain to the incremental patients. The marginal cost for the incremental patients is $900 per case. The practice needs to maintain its 15% profit margin; can the practice afford to accept this proposal and maintain its profit margin?

