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How much will save if negotiate with payers

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Problem 1: You are a CFO of Utica Hospital. Suppose your projected average daily reimbursement is $100,000 and your average collection period (ACP) is 40 days. What is your hospital's cost of carrying receivables at 10% interest annually?

Problem 2: How much will you save if you negotiate with your payers that ACP must be 30 days?

Reference no: EM132856809

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