healthcare financial managment

1. Assume the following information about cost and charges for a hospital in 2014:

Fixed Costs = $10,000,000

Variable cost per inpatient Day = $200

Charge Per Inpatient Day = $1,000.

Profit Margin = $1,000,000

calculate the:

a) accounting breakeven point quantity and breakeven dollar amount and

b) the economic breakeven point quantity and dollar amount.

For each measure estimated above: define the measure, explain the importance of that measure to the healthcare services manager.

Explain how these breakeven points would vary in a capitated and non-capitated environment.  Provide a numerical example in a table to illustrate difference.