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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:
- The hospitals treated 600,000 patients per year.
- Each patient was estimated to bring 700 AED on average)
- The fixed cost of the hospital = 10,000,000 AED per year.
- Each patient was estimated cost = 440 AED.
formula:
(Profit=Total revenue (P*Q) expenditure (F. Cost + V. Cost (Variable cost*Q)).
- 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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