XYZ hospital is paid on the basis of the RCCAC method. XYZ has total costs of $8 million, total charges of $12 million, and charges to Blue Cross of $6 million. We expect Blue Cross to pay
A) $6 million.
B) $2 million.
C) $4 million.
D) $8 million.
E) $10 million.

Question

Quizplus · Accepted Answer

The cost-to-charges ratio is $8M / $12M = 2/3. The Blue Cross share of those charges will be 2/3 x $6M = $4M.

XYZ Hospital Is Paid on the Basis of the RCCAC