According to the California Nurses Association, Tenet Healthcare hospitals marked up drugs substantially. At Tenet’s Sierra Vista Regional Medical Center, drug prices were 1,840.80% of the hospital’s costs (Chuck Squatriglia and Tyche Hendricks, “Tenet Hiked Drug Prices, Study Finds More Than Double U.S. Average,” San Francisco Chronicle, November 24, 2002: A1, A10). Assuming Tenet was maximizing its profit, what was the elasticity of demand that Tenet believed it faced? What was its Lerner Index for drugs?