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Assume that Valley Forge Hospital has only the following three payer groups: Payer # of Admissions Avg Rev Per Admission Varaible Cost PerAdmission PennCare 1,000

Assume that Valley Forge Hospital has only the following three payer groups:

Payer # of Admissions Avg Rev Per Admission Varaible Cost PerAdmission

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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