Question
I am wondering if anyone has taken Financial Management and used the textbook Essentials of Health Care Finance by William O. Cleverley? I need help
I am wondering if anyone has taken Financial Management and used the textbook Essentials of Health Care Finance by William O. Cleverley? I need help understanding how to answer this question. Can you please assist and provide calculation that I can follow and learn from?
Community Hospital has annual net patient revenues of $150 million. At the present time, payments receive by the hospital are not deposited for six days on average. The hospital is exploring a lock-box arrangement will promises to cut the six days to one day. If these funds releases by the lock-box arrangement can be invested at 8%, what will the annual savings be? Assume the bank fee will be $2,000 per month.
Please show and explain calculations so that I can understand!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started