1.Estimate the variable cost per MS-DRG 470 using the departmental cost to charge ratios and variable cost percentages using the data below

Your hospital has been approached by a major HMO to perform all of their MSDRG 4705 (major joint procedures). They have offered a at price of $10,000 per case. You have reviewed your charges for MS- DRG 470 during the last year and found the following prole: Average Charge: $15, 000 Average LOS: 5 Days Cost! Charge Variable Cost % Routine Charge 0.30 Operating Room Anesthesiology Radiology Medioal Supplies Pharmacy Other Ancillary Total Ancillary