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

Question:

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

image text in transcribed

The hospital expects to have a patient load of 15,000 inpatient days next year.

a. Construct the hospital’s base case projected P&L statement.
b.What is the hospital’s breakeven point?

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

d. Now, assume that 20 percent of the hospital’s inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: