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1. (25 points) Using the financial model presented on pages 383-384, and the Excel template provided, simulate (using Excel Solver) the effect of the proposed

1. (25 points) Using the financial model presented on pages 383-384, and the Excel template provided, simulate (using Excel Solver) the effect of the proposed scenarios on this hospitals profit. Scenario 1: Set the max value of reduction across the revenue options at 30% Scenario 2: Set the max value of reduction across the revenue options at 20%. Scenario 3: Set the Shared Savings revenue at 50 (in the Baseline portion of the file). Which one of the proposed scenarios results in the bigger profit (net) for the hospital? Does your result (answer) make sense? Please explain

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