Assume that dr jones patients pay an average 80 percent of

Question

The following information summarizes charge and cost data for Dr. Jones during the last year:

                        Number of Cases                    100

                        Charges                          $700,000

                        Nursing Charges             $350,000

                        Lab Charges                   $200,000

                        Pharmacy Charges            $50,000

                        Radiology Charges         $100,000

1. Assume that Dr. Jones' patients pay an average 80 percent of charges. Also assume cost to charge ratios of 0.90 in Nursing, 0.80 in Lab, 0.50 in Pharmacy, and 0.70 in Radiology. What is the profit earned on Dr. Jones' patients?
2. Would your facility lose money if Dr. Jones decided to leave and take her patients to another hospital? Provide more than one reason why it is highly likely that a loss would result.