Assume that you are the Manager of the Finance Department of a for-profit hospital. The hospital has been approached by a major employer in your market area, an international airport, to negotiate a preferred provider arrangement. The employer is seeking a 25% discount from current charges. Prepare a summary of the financial implications of this decision. 

Describe the factors that would be critical in this decision. 

 

Assume the same scenario, where your hospital is a not-for-profit organization. Prepare a second summary of the financial implications of this decision. Keep in mind the regulative pressures that make sure that not-for-profit hospitals meet their charitable mission.