Should the hospital agree to the discount proposal

Reference no: EM13268437

General hospitals, a not-for-profit acute facility, has estimate the following cost fir its inpatient services: Fixed costs: $10,000,000 Variable cost per inpatient day: $200.Revenue per inpatient day:$1000.The hospital expects to have 15,000 inpatient days next year. a.Construct the hospital's base case projected P& L statement What is the hospital's underlying cost structure? b.What is the hospital breakeven point? c.What volume is required to provide a profit of $1,000,000? A profit of $500,000? d.Assume tha 20 percent of hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges.should the hospital agree to the discount proposal?

Reference no: EM13268437

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