If a facility's cost per discharge is $6000 and its net price per discharge is $6450,...
If a facility's cost per discharge is $6000 and its net price per discharge is $6450, what is the profit per discharge? Discuss the impact of bad debt losses and charity care on profit per discharge.
Help please
Homework Answers
The profit per discharge = Net price per discharge - Facility's cost per discharge = $6450 - $6000 = $450 per discharge
The impact of bad debt and charity care on profit per discharge is that is reduces the overall profit by the bad debt losses and amount of charity with the tax effect taking into consideration ie. loss amount * (1 - tax rate) = net loss.
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