Cavallo Hospital is evaluating their profit/loss for their most common procedures. In order to do so, they are evaluating the following DRGs for actual reimbursement vs their charges. ** Remember to round your numbers up when you are calculating.

MSDRG	Case Weight	Charges	ALOS
560	0.5295	$7,532.22	2
775	0.525593	$7,330.74	4
203	0.6501	$7,300.17	2
897	0.651277	$6,876.54	4
144	1.6989	$23,525.11	3
541	0.911094	$12,107.85	3

1. Assuming the base rate is $11,500, how is Cavallo Hospital performing according to their charges versus the DRG payment (quantify and show your work)?

2. What would the reimbursement need to be at a per diem rate to receive the same reimbursement as the DRG payment, that is, if the DRG payment is $5000, and ALOS 5, how much would the per diem rate need to be to receive the same $5000 payment? Show your work.