The administrator of a small, acute care hospital is faced with his first managed care contract. He

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The administrator of a small, acute care hospital is faced with his first managed care contract. He meets with representa- tives from the prepaid plan to discuss the amount to be paid to the hospital. The administrator is concerned because the managed care business does not look. profitable the hospital will be reim- bursed below its current reimbursement levels. In what ways might the administra- tor evaluate this new managed care busi- ness in terms of its economic value to his institution?

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