Managed Care Hospital Assignment

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The administrator of a small, acute-care hospi­tal is faced with his first managed care contract. He meets with representatives from the prepaid plan to discuss the amount to be paid to the hospital. The administrator is concerned because the managed care business does not look profitable—the hospital will be reimbursed below its current reimbursement levels. In what ways might the administrator evaluate this new managed care business in terms of its economic value to his institution?

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