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General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day 200
General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day 200 Charge (revenue) per inpatient day 1,000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospital's base case projected P&L statement. b. What is the hospital's breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now assume that 20 per cent of the hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree
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