Change in profit if the hospital accepts the proposal

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General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $946189 Variable cost per inpatient day $17 Charge (revenue) per inpatient day $90 The hospital expects to have a patient load of 1505 inpatient days next year. Assume that 20 percent of the hospital's inpatient days come from a managed care plan that wants a 24 percent discount from charges. What is the change in profit if the hospital accepts the proposal?

Reference no: EM131073347

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Change in profit if the hospital accepts the proposal : General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $946189 Variable cost per inpatient day $17 Charge (revenue) per inpatient day $90 The hospital expects to have a patient..

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