Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I calculate a break even point with data on cost, variance and profit analysis with this question? You are attempting to develop a

How do I calculate a break even point with data on cost, variance and profit analysis with this question?

You are attempting to develop a break-even for a capitation contract with a major HMO. Your hospital has agreed to provide all inpatient hospital services for 10,000.00 covered lives.You will receive $38 per-member-per-month (PMPM) to cover all inpatient hospital services.It is anticipated that 93 admissions per 1,000 covered lives will be provided with an average length of stay equal to 5.0, or 465 days per 1,000.

You anticipate that your hospital will incur fixed costs, or readiness to serve costs, of $1,860,000 for these 10,000 covered lives. Variable costs per patient day are expected to be $600.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management A Risk Management Approach

Authors: Anthony Saunders, Marcia Millon Cornett

9th edition

1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772

More Books

Students also viewed these Finance questions

Question

What is the role of reward and punishment in learning?

Answered: 1 week ago

Question

Identify the characteristics of the joint production process.

Answered: 1 week ago