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General Hospital a notforprofit acute care facilityhas th

General Hospital, a non for profit acute care facility, has the
following cost structure for its inpatient services: Fixed Cost
$10,000,000 Variable cost per inpatient day $200 Charge (revenue)
per inpatient day $1,000 The hospital expects to have a patient
load of 15,000 inpatient days next year. a. Construct the
hospital’s base case projected P & L statement. b. What is the
hospital’s breakeven point? c. What volume is required to provide a
profit of $1,000,000? A profit of $500,000? d. Now assume that 20%
of the hospital’s inpatient days come from a managed care plan that
wants a 25% discount from charges. Should the hospital agree to
that discount proposal?

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