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How much fiancing does the hospital require

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Reference no: EM133057063

Consider a hospital with a single bed. Suppose (1) that the length of stay is 10 days, (2) that the hospital bills $20,000 for each 10-day episode of care on discharge, and (3) that operating costs of $15,000 per episode are paid on discharge. If it takes the hospital 30 daysto collect an account receivable, how much fiancing does the hospital require to avoid running out of cash?

Reference no: EM133057063

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