What does the analysis indicate about the true (but not really observable) profitability of each of the patient service departments?

50 Cases in Healthcare Finance EXHIBIT 7.1 Revenues an Family Practice: Adult Medicine partmental Revenue Obstetrics nd Cost Projections $12,000,000 6,000,000 2,000,000 $20,000,000 Total revenues Direct Costs Patient Services Adult Medicine Obstetrics Pediatrics $6,000,000 3,600,000 1,200,000 $10,800,000 Subtotal Support Administration Facilities Finance $1,000,000 4,400,000 1,800,000 $7,200,000 $18,000,000 Subtotal Total expenses Pretax profit 2,000,000