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Solve kinder net profit under fee for service reimbursement

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Kinder Hospital's fee-for-service is $3000 under a prospective payment system. Under a capitation reimbursement system, Kinder must cover 800 patients. Its annual fixed costs are $800,000 and its variable cost per admission is $2,000.

Problem 1: Solve Kinder's net profit under the Fee For Service Reimbursement method if patient admissions are only 750.

Reference no: EM133007356

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