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The healthy hospital has been pushed by its physicians to add an open heart surgery unit. This has always been resisted on the grounds that there was not adequate demand to make the unit financial reasonable. Under the DRG system, Healthy could expect to receive an average reimbursement of $56,000 per open heart surgeries per year. Incremental costs would be expected to be $60,000 per case, so a loss would be incurred.
However the prestige associated with offering open heart surgery would attract new affiliations. It is expected that 10 additional general practice physicians would join the staff and each of these 10 physicians would generate 20 patients per year, spread across a wide variety of DRGs. Struggling has excess capacity and would welcome additional patients.
It is expected that the average DRG reimbursement for these new patients would be $28,000. The average cost is expected to be $27,000. The average marginal cost is expected to be $26,400. Should healthy add open heart surgery as a loss leader?
Which is the international standard for quality management for automotive industry suppliers of production parts, materials, and services?
The following forms of fall protection are suitable when workers are required to pass over an excavation more than six feet deep.
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The book discusses several different performance appraisal systems. Compare and contrast these systems and indicate which system you believe is the most effective and why.
During 2007-2009, the Nintendo Wii established leadership over the Sony PS3 and Microsoft Xbox 360 in the market for video game consoles. Unlike Sony and Microsoft, Nintendo is completely dependent upon the video games industry for its revenues. How ..
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