1 a not-for-profit acute care facility has the following, Ask an Expert

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1. A not-for-profit acute care facility, has the following cost structure for its inpatient services, and expects to have a patient load of 15,000 inpatient days next year:

Fixed costs $10,000,000

Variable cost per inpatient day 200

Charge (revenue) per inpatient day 1,000

a. What is the hospital's breakeven point?

b. What is the volume required to provide a profit of $1,000,000? A profit of $500,000

c. Assume that 20% of the hospital's inpatient days come from a managed care plan that wants a 25% discount from charges. Should the hospital agree to the discount proposal?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9999772

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