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Discussion: "Mercy Hospital"
Please respond to the following:
At Mercy Hospital, the clinical service line managers have improved their internal operations, but the total cost is still substantially above benchmark. Imagine that you are the financial manager. Describe how you would respond if a clinical service line reports that it is unable to improve its costs next year because the burden of transfer charges and allocated overhead are too great.
Determine the performance measure that Mercy should use to evaluate the effectiveness of the clinical service line managers from a financial management perspective.
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