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Payer Mix and Contract Negotiation MicroSim

Run the Payer Mix and Contract Negotiation MicroSim MicroSim Fullscreen

About This MicroSim

This interactive calculator shows how a hospital's payer mix and contracted reimbursement rates jointly determine net revenue at a fixed service volume. Each payer contributes net revenue equal to its share of total charges times its contracted rate (as a percent of charges). The bar chart contrasts gross charges with net revenue per payer — the gap is the contractual discount — and the table traces the full calculation from share to charges to net, with the total compared against the baseline scenario.

How to Use

Drag a payer's "Volume share" slider to shift the mix (shares auto-normalize to 100%) or its "Contracted rate" slider to model a rate change, and edit total annual charges to scale the whole book. Watch the net-revenue total and the delta-versus-baseline update instantly — raising the Commercial rate a few points or shifting volume from Medicaid to Commercial both increase net revenue, showing why mix and rate are negotiation levers of comparable power. Use "Reset to baseline" to return to the starting scenario.

Iframe Embed Code

You can add this MicroSim to any web page by adding this to your HTML:

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<iframe src="https://dmccreary.github.io/modeling-healthcare-data/sims/payer-mix-contract-negotiation/main.html"
        height="450px"
        width="100%"
        scrolling="no"></iframe>

Lesson Plan

Grade Level

9-12 (High School Geometry)

Duration

10-15 minutes

Prerequisites

TODO: List prerequisites.

Activities

  1. Exploration (5 min): TODO
  2. Guided Practice (5 min): TODO
  3. Assessment (5 min): TODO

Assessment

TODO: List assessment criteria.

References

  1. TODO: Add references.