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Ministry of Health hospitals is tending to be more profitable. In the case of hospitals, financial summary information was given as: The hospitals treated 600,000

Ministry of Health hospitals is tending to be more profitable. In the case of hospitals, financial summary information was given as:

  1. The hospitals treated 600,000 patients per year.
  2. Each patient was estimated to bring 700 AED on average)
  3. The fixed cost of the hospital = 10,000,000 AED per year.
  4. Each patient was estimated cost = 440 AED.

formula:

(Profit=Total revenue (P*Q) expenditure (F. Cost + V. Cost (Variable cost*Q)).

  1. Compute the Ministry of Health in profit or in lose situation, and what consequences will affect the health care delivery in this case?

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