Your hospital faces considerable revenue uncertainty because you have to negotiate contracts with several health insurance companies. You forecast a 10% chance your total inpatient revenue from Florida blue will be $456,000, a 20% chance that your inpatient revenue from Medicare will be 575,634, a 30 percent chance that your inpatient revenue from Medicaid is 300,000 , a 40 percent chance that your will get 60% back of your bad debt (600,000) from Medicaid disproportionate share dollars program. Your costs are also uncertain, as the prices of your supplies fluctuate considerably. You forecast a 40 percent chance that your costs will be $400,000 and a 60 percent chance that your costs will be $250,000. Use Excel to set up a decision tree for your profit forecast (it does not matter whether costs or revenues come first). Setup for Decision Tree Your hospital faces considerable revenue uncertainty because you have to negotiate contracts with several health insurance companies. You forecast a 10% chance your total inpatient revenue from Florida blue will be $456,000, a 20% chance that your inpatient revenue from Medicare will be 575,634, a 30 percent chance that your inpatient revenue from Medicaid is 300,000 , a 40 percent chance that your will get 60% back of your bad debt (600,000) from Medicaid disproportionate share dollars program. Your costs are also uncertain, as the prices of your supplies fluctuate considerably. You forecast a 40 percent chance that your costs will be $400,000 and a 60 percent chance that your costs will be $250,000. Use Excel to set up a decision tree for your profit forecast (it does not matter whether costs or revenues come first). Setup for Decision Tree