HCA341 California State Financial Management in Health Care Report Answer the following in the document provided, Answer the following in the document provided , Answer the following in the document provided . ASSIGNMENT III
HCA 341 Financial Management in Health Care
Fall 2019
1. Consider the data in the table below for the three independent health services organizations:
Sales
Total Variable
Costs
Fixed
Costs
Total
Costs
Profit
a.
$10,000
$7,400
?
$10,000
?
b.
?
12,000
?
$14,600
$2,400
c.
$24,000
?
$6,800
?
$3200
Fill in the missing data by question marks.
2. General Hospital, a non-for-profit acute care facility, has the following cost structure for its
inpatient services:
Fixed costs
$10,000,000
Variable cost per inpatient day
$200
Charge (revenue) per inpatient day
$1,000
The Hospital expects to have a patient load of 15,000 inpatient days next year.
a. Construct the Hospitals base case projected P&L statement.
b. What is the Hospitals breakeven point?
c. What volume is required to provide a profit of $1,000,000? A profit of $500,000?
d. Now, assume that 20 percent of the hospitals inpatients come from a managed care plan that
wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?
Show how you arrived at your decision.
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