Kinder Hospital fee for service is $3000 under a prospective system. Under a capitation reimbursement system, Kinder must cover 800 patients. Its annual fixed costs are $800,000 and its variable costs per admission is $2,000. 

Calculate Kinder net profit under the Fee for Service Reimbursement method if patient admissions are only 750.

 

 

 

 

 

Answer rating: 100% (QA)

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