4. In this city , there are two major players who together cover 85% of the commercial insured lives . They have both approached St . Sebastian about forming narrow networks as a vehicle forselling* products in the exchanges . Your hospital has an excellent reputation , and both players would like to sell a product that features your hospital as the only in - network option for adult care . So , in exchange for agreeing to a reimbursement rate of 120 % of Medicare , St . Sebastian would garner 75% of the hospital visits in the exchanges . For the rest , assume Pediatric continues to serve the same number of patients (i.e. same as you've projected for 2018 previously ) and the remaining visits are evenly split between Mercy and University . Is this an offer that St. Sebastian should accept ?"