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Assume that Valley Forge Hospital has only the following three payer groups: Payer # of Admissions Avg. Revenue/Adm Variable Costs/Adm PennCare 1,000 $5,000 $3,000 Medicare

Assume that Valley Forge Hospital has only the following three payer groups: Payer # of Admissions Avg. Revenue/Adm Variable Costs/Adm PennCare 1,000 $5,000 $3,000 Medicare 4,000 $4,500 $4,000 Commercial 8,000 $7,000 $2,500 The hospital

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