Question
Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 469 (major joint and limb reattachments,(lower extremity) with MCC that
Dr. Mallory practices at your hospital and your competitor. Presented below are data for DRG 469 (major joint and limb reattachments,(lower extremity) with MCC that reflects practice patterns for Dr. Mallory at the two hospitals: Your Hospital Competitor ____________________________________________________________ Discharges 150 90 Average age 68 50 Length of stay 4.4 4.1 Average cost $10,550 $7,108 Nursing cost 1,998 1,208 Ancillary cost 8,552 5,900 Operating room cost 2,405 2,158 Lab cost 836 484 Radiology cost 277 191 Medical Supplies cost 3,022 1,690 Pharmacy cost 857 335 Other costs 1,156 1,042 1. Activity: Calculate the contribution margin per case based on the following information: (a) Variable cost per case $2,000. (b) Fixed cost per period $200,000. (c) Price per case $4,800.
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