show your work if possible.

D G H Your hospital has been approached by a major HMO to perform all their MSORG 505 cases (foot surgeries). They have offered a fat payment of $8,000 per case. You have reviewed your charges for MSORG 505 during the last year and found the following profile Amount Cost/Charge $3,200 Variable Cost 65 0.75 7 DATA SET Average Charge: 511,300 4 Average Length of Stay (LOS) 4 5 Days 5 6 7 Routine Charge 8 9 ANCILLARY: 10 Operating Room 11 Anesthesiology 12 ab 13 Radiology 14 Medical Supplies 15 Pharmacy Other Ancillary 17 Total Ancillary S $ s 0.70 0.70 0.65 40 0.65 1.850 S 210 $ 525 $ 2755 3,220$ 955 $ 1,015 S 8,100 $ 9299392 0.60 0,55 0.75 0.20 35 25 Total Costs (5) Variable Costs (9) Fixed Costs (5) REQUIREMENT 1: Complete the below table Calculate the Total Cost based on the Cost per Charge above in the DATA SET 2 Calculate the Variable Cost based on the % in the above DATA SET 3 Calculate the Fixed Costs HINT: VC+FC = TC -4 5 Charge Amount 6 Routine Charge $3,200 7 Operating Room $ 1.850 8 Anesthesiology $ 210 9 Lab $ 575 0 Radiology S 275 31 Medical Supplies $ 3,220 32 Pharmacy S 955 33 Other Ancillary $ 1,015 34 Total Ancillary $ 8,100 D E 36 REQUIREMENT 2: (Show your Work for the Calculation) 37 In the above data set, assume that the hospital's cost-to-charge ratio is 0.75 for routine services and 0.70 for Total Ancillary services. Using this information, 38 what would the average cost of MSDRG 505 be? 39 40 HINT: You are calculating based on your ROUTINE CHARGE amount and your TOTAL ANCILLARY charge amount 41 42 AVG Cost of MSDRG 505 procedure Input your amount in this box 43 44 SHOW YOUR WORK BELOW: 45 46 47 49 49 REQUIREMENT 3: 50 What is your calculated total variable cost (le, including both routine and ancillary) per MSORG 505 from the TABLE you completed above? 51 S2 Total Variable costs (5) 53 Input your amount in this box D E REQUIREMENT 4: What is your PROFIT per MSDRG 505 ? 3. HINT: You profit is what you will receive for payment from HMO less your Total Costs (5) PROFIT per MSDRG 505 Input your amount in this box