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General Hospital, a non-for-profit acute care facility, has the following cost structure for its inpatient services (show your work - 10 points): Fixed costs: $27,000,000
General Hospital, a non-for-profit acute care facility, has the following cost structure for its inpatient services (show your work - 10 points): Fixed costs: $27,000,000 Variable Cost per inpatient day: $900 Charge (revenue) per inpatient day: $2,000 The Hospital expects to have a patient load of 28,000 inpatient days next year. a. Construct the Hospital's base case projected P&L statement. b. What is the Hospital's accounting breakeven volume? c. What volume is required to provide a profit of $5,000,000 and $7,500,000? d. Assume that 25% of the patients belong to one HMO and they want a a 10% discount from charges. Answer questions a, b, and c under those conditions
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