Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They h 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 Variable Cost % 60 0.80 Operating Room 2,657 0.80 80 Anesthesiology 293 0.80 80 Lab 1,035 0.70 30 Radiology 345 0.75 50 Medical Supplies 4,524 0.50 90 Pharmacy 1,230 0.50 90 Other Ancillary 1,316 0.80 60 Total Ancillary $11,400 0.75 50