General hospital a not-for-profit acute care facility has, Ask an Expert

Finance

General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:

Fixed costs $1017296

Variable cost per inpatient day $22

Charge (revenue) per inpatient day $97

The hospital expects to have a patient load of 1390 inpatient days next year. Assume that 20 percent of the hospital's inpatient days come from a managed care plan that wants a 26 percent discount from charges. What is the change in profit if the hospital accepts the proposal?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92748949

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