2. The Oakland County Hospital performs lots of work for Medicare and Medicaid patients. This results in both reimbursement of certain operating costs and some profit. Transfers among related subsidiaries within the Hospital also contain some Medicare and Medicaid profits. For example, the pharmacy, nursing and anesthesiology subsidiaries often all participate in a Medicare and Medicaid surgical operation. When the Hospital prepares consolidated financial statements, it asks you whether the Hospital should eliminate gains on such transactionsespecially if others consider such transactions as dealings with regulated affiliates.