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Consider a hospital with a single bed. Suppose (1) that the length of stay is 10 days, (2) that the hospital bills $20,000 for each
Consider a hospital with a single bed. Suppose (1) that the length of stay is 10 days, (2) that the hospital bills $20,000 for each 10-day episode of care on discharge, and (3) that operating costs of $15,000 per episode are paid on discharge. If it takes the hospital 30 days to collect an account receivable, how much financing does the hospital require to avoid running out of cash? $20,000 $15,000 $60,000 $40,000
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