1.In the below data set, assume that the hospital's cost to charge ratio is 0.80 for routine services and 0.75 for all other ancillary services. Using this information, what would be the average cost of MS-DRG 470?

Your hospital has been approached by a major HMO to perform all of their MSDRG 4705 (major joint procedures). They have offered a at price of $10,000 per case. You have reviewed your charges for MS- DRG 470 during the last year and found the following prole: Average Charge: $15, 000 Average LOS: 5 Days Cost! Charge Variable Cost % Routine Charge 0.30 Operating Room Anesthesiology Radiology Medioal Supplies Pharmacy Other Ancillary Total Ancillary