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Reimburse for actual operating costs

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A healthcare firm's investment of $1,000 in a piece of equipment will reduce labor costs by $400 per year for the next 5 years. Thirty percent of all patients seen by the firm have a third-party payer arrangement that pays for capital costs on a retrospective basis. Thirty percent of all patients also reimburse for actual operating costs.

What issues need to be taken into consideration to determine which is the lowest cost alternative?

Reference no: EM131173444

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