Textbook reference: Cleverly, Song, & Cleverly Essentials of Health care Finance, 7th edition.

Saint Joseph's University Financial Management of Health Care Organizations 5th Home Work Assignment _____________________________________________________________________________________ Class, Activity: I have selected the 5th Home Work Assignment (HWA) from the material in chapter 22 in our text, please complete the assignment and post your responses to blackboard. Question: Community Hospital has annual net patient revenues of $150 million. At the present time, payments received 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 released 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