FINANCE-Explain the essential differences between marginal costs

QUESTION

HW:

1.
Explain
the essential differences between marginal costs pricing and full costs
pricing? Should full cost pricing
include indirect costs? Why or why not? I
2.
If
market research indicates that a healthcare provider could not cover its
variable costs for radiology treatments at current rates paid to other
providers by insurers and individuals, should the healthcare provider begin
offering radiology treatments? Why or
why not?
3.
The Tysons Clinic is in negotiations with
Mountain Health Insurer. The clinic
currently runs at 70 percent of its capacity and Mountain Health would improve
utilization to 85%. The average costs
per admissions (Full costs) is $4000 and variable costs per admission are
$2500. Mountain Health offers revenues
equal to $3500 per admission. Should
Tysons accept Mountain Health’s price offer and guaranteed admissions?
4.
Define
a relative value unit, and outline a schedule of three health services with
relative value units of 3, 7, and 12 and estimate their prices base on your
definition and valuation of a relative value unit.

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