Problem 2. Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: Average Charge $15,000 Average LOS 5 Days Routine Charge $3/600 Cost/Charge 0.80 Variable Cost % 60 Operating Room 2.657 0.80 80 Anesthesiology Ls 293 0.80 80 Labs 1.035 070 30 Radiology 345 0.75 50 Medical Supplies 4524 0 50 90 Pharmacy 1230 0.50 90 Other Ancillary 1 316 0.80 60 Total Ancillary $ 11,400 0.75 50 In the above data set assume that the hospital's cost to charge ratio is 0.80 for routine services and 0 75 for all other ancillary services Using this information, what would the average cost of MS-DRG 470 be