For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John's treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare? (b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan's treatment was same as John, $128,000, but cost to charge ratio for Hospital B was 0.25. How much payment hospital B would get from Medicare?

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For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount
of $21,313.50. Outlier threshold for Medicare is $25,800.
(a) John admitted hospital A for pancreas transplant. The charges for John's
treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much
payment hospital A would get from Medicare?
(b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan's
treatment was same as John, $128,000, but cost to charge ratio for Hospital B
was 0.25. How much payment hospital B would get from Medicare?

10:25 A
Homework IV.pdf
1 of 2
Homework IV
НРАМ 621
Prof. Onur Baser
Due April 29
1. For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount
of $21,313.50. Outlier threshold for Medicare is $25,800.
(a) John admitted hospital A for pancreas transplant. The charges for John's
treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much
payment hospital A would get from Medicare?
(b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan's
treatment was same as John, $128,000, but cost to charge ratio for Hospital B
was 0.25. How much payment hospital B would get from Medicare?
2. In the following graph, suppose market is in equilibrium at point A. Determine if you
agree or disagree with the statements.
a. Suppose there is an increasing in demand for health care services but no changes
in supply, then the new equilibrium will be at point C.
b. From equilibrium point A, if there exist an increase in supply of the doctors in the
area, the new equilibrium would be at point B.
c. From equilibrium point A, if there is an induced demand from the increased
number of doctors in the area, the new equilibrium would be at point C.
d. If the demand curve is D', one can not say that there is an induced demand with
the increase of physicians in the area.
D'
Q.
Q.
Quantity of Services Delivered
Price per Unit Output
Transcribed Image Text:10:25 A Homework IV.pdf 1 of 2 Homework IV НРАМ 621 Prof. Onur Baser Due April 29 1. For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John's treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare? (b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan's treatment was same as John, $128,000, but cost to charge ratio for Hospital B was 0.25. How much payment hospital B would get from Medicare? 2. In the following graph, suppose market is in equilibrium at point A. Determine if you agree or disagree with the statements. a. Suppose there is an increasing in demand for health care services but no changes in supply, then the new equilibrium will be at point C. b. From equilibrium point A, if there exist an increase in supply of the doctors in the area, the new equilibrium would be at point B. c. From equilibrium point A, if there is an induced demand from the increased number of doctors in the area, the new equilibrium would be at point C. d. If the demand curve is D', one can not say that there is an induced demand with the increase of physicians in the area. D' Q. Q. Quantity of Services Delivered Price per Unit Output
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