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Summary BIHC Unit II Case Study.docx BHA 4001 Case Study Columbia Southern University BHA 4001 Case Study Introduction The case study œReal-World Scenario introduces the reader to Gary Bentham, the chief financial officer of Bartlett Community Hosp
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BIHC Unit II Case S BHA 4001 Case Study Columbia Southern University BHA 4001 Case Study Introduction The case study œReal-World Scenario introduces the reader to Gary Bentham, the chief financial officer of Bartlett Community Hospital and Alice Mullins, the chief negotiator at Ant...
bihc unit ii case studydocx bha 4001 case study columbia southern university bha 4001 case study introduction the case study œreal world scenario introduces the reader to gary bentham
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BHA 4001
Case Study
Columbia Southern University
BHA 4001
Case Study
Introduction
The case study “Real-World Scenario” introduces the reader to Gary Bentham, the chief
financial officer of Bartlett Community Hospital and Alice Mullins, the chief negotiator at
Antrim Healthcare. In preparation of contract negotiation, Gary Bentham has provided Antrim
with a notification of his intent to terminate their contract. Rather than negotiating and coming to
a resolution, Alice Mullins has expressed her unwillingness to increase the payment schedule.
Gary has three important questions for Alice. In this essay, I will explain Gary’s marginal cost
for the Antrim book of business, explain whether or not his competitor could handle his current
Antrim volume and at what cost, the prospective percentage of his Antrim volume that he would
retain if his system were not in Antrim’s network, and an alternative Gary could consider for
revenue if the Antrim contract is lost.
Marginal Cost
Calculating the marginal cost is valuable in helping an organization maximize their
profits. Gary’s marginal cost for Antrim is $240. The marginal cost can be defined as the
difference in the total cost that is generated by the production of one unit (Cleverley, 2017). Gary
anticipated that he could expect a rate of $5,040 and had determined that a case with a weight of
1.0 would be a base payment of $4,800. The difference of $5,040 and $4,800 is $240. Antrim is
unwilling to offer any payment higher than $5,040 but in order to break even, he would need
$5,859 (Cleverley, 2017).
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