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The Metropolitan Ciry Hospital is unlonited. In 2011, nures received an xrenge anmal naluy of 545,000 . The boopital adtuinistrator is considering bow the cotmact

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The Metropolitan Ciry Hospital is unlonited. In 2011, nures received an xrenge anmal naluy of 545,000 . The boopital adtuinistrator is considering bow the cotmact with nurses shoald be changed for 2012. In tam, the current practice of charging nurving corta to each departunest might also be changed. Each department is accocntable for is financial performance. Revenoer and expenses are allocated to departments. Connider the expenver of the obitetrich deparment in 2011: Variable empenses (basod on 2011 patieat-dryp) are Fired expenses (based on number of bedi) are Nurses are asaigned to departuents on the baris of annal putient-dyys, as followx: Total patient-days are the number of patients multiplied by the number of dyy they are bospitalined. Each department in charged for the salsries of the nurner assigned to it. During 2011 the obitetrics department had a capacity of 60 beds, billed insurance and goremment a sencies an average of 5800 per day for each patient, and had revenves of $12 million 1. Compote tbe 2011 volume of activity in patimt-days 2. Compute the 2011 patient-days that woald have been necensary for the oberrerics department to recoop all fired emenses ereept nursing erpenses. 3. Compute the 2011 patient-days that would have been necetary for the obecetrics department to break even, including nunet' salaries as a fired coot. 4. Suppose Obstetrios mast pay $200 per patient-day for nurning services. This phat would replace the tro-leral fuxed-cost syvem employed in 2011. Compete wat the hreak-even point in patient-days would have been in 2011 under this phan

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