6. Given the following gures, compute the adjusted discharges for Hospital XYZ.

Question

6. Given the following gures, compute the adjusted discharges for Hospital XYZ.

• Total inpatient discharges: 11,250

• Gross outpatient revenue: $1,000,000

• Inpatient gross revenue per discharge: $14,000

12. Hospital XYZ is in the market for a new MRI machine and is considering two dierent products. Machine A costs $20,000 up front and $200 per use. Machine B costs $14,500 up front and $265 per use. At what point do these two machines cross over? Which machine should they choose if their estimated number of uses is 15 over this point? Which machine should they choose if their estimate is 4 under?

Explanation / Answer

Cross over Point :

14500 + 265*X = 20000 + 200*X

X = 84.61 i.e 85 uses

Estimated uses 15 :

Machine A =20000 + 200*15 = 23000

Machine B =14500 + 265*15 = 18475

Machine B should be selected due to lower cost.

Estimated uses 15 :

Machine A =20000 + 200*4 = 20800

Machine B =14500 + 265*4 = 15560

Machine B should be selected due to lower cost.

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