WANP = [summation over (i)]Prop([R.sub.i]) x (1 - [B.sub.i]) x [P.sub.i] (6)
Accordingly, WANP is the revenue per unit, adjusted for expected bad debts and the organization's payer mix.
Panel D summarizes the calculations required to estimate the WANP. An inspection of column 1 of Panel D reveals that the illustration assumes the payer mix of the organization consists of five insurers.
Thus, the variable cost per unit is 70 percent of the WANP, and the unit contribution margin is $20.52 (i.e.
In Panel F, the low, expected and high estimates of net patient revenue were derived by applying the WANP of $68.40 to the three respective volume projections derived in Panel C.
This approach was also used to estimate the effects of changes in the parameters of the WANP. Specifically, the bad debt rates were lowered and the set of prices were increased relative to the values on which the calculations presented in Exhibit 1 were based.
NOVEMBER 10-11: WASHINGTON ASSOCIATION OF NATUROPATHIC PHYSICIANS (WANP
) FALL CONFERENCE--Primary Care Update: An Integrative Approach@Bastyr University in Kenmore, Washington (near Seattle).