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The following information summarizes charge and cost data for Dr. Jones during the last year:
Number of Cases 100
Charges $700,000
Nursing Charges $350,000
Lab Charges $200,000
Pharmacy Charges $50,000
Radiology Charges $100,000
Please provide calculations
1. Assume that Dr. Jones’ patients pay an average 80 percent of charges. Also assume cost to charge ratios of 0.90 in Nursing, 0.80 in Lab, 0.50 in Pharmacy, and 0.70 in Radiology. What is the total profit earned on Dr. Jones’ patients?
2. Would your facility lose money if Dr. Jones decided to leave and take her patients to another hospital? Provide more than one reason why it is highly likely that a loss would result.
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