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An HMO requests your hospital services for its obstetrics division. It offers to pay your hospital $2,000 for a vaginal delivery without complications (DRG 373). You look at the Standard Test Procedure (STP) for this Diagnosis-Related Group (DRG) and discover that your hospital's cost is $2,400. What will you do to obtain the contract?

Present your work as a 2-page report in a Word document formatted in APA style.

Name your document LastnameFirstInitial_W5_A2.doc.



For example, if your name is John Smith, your document will be named SmithJ_W5_A2.doc

By Sunday, October 13, 2013, submit your report to the W5: Assignment 2 Dropbox.

Assignment 2 Grading Criteria
Maximum Points
Explained ways to analyze the hospital's cost for the procedure and operational data for the procedure to identify possible cost reductions.
8
Calculated marginal profit for various costing profiles.
8
Identified and explained ways to make the contract profitable for the hospital.
12
Applied the correct APA style, usage, grammar, and punctuation.
4
Total
32
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