Operating Margins

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  • Imagine you work for a hospital where the operating margins have been
    consistently below national norms for the past three (3) years. Discuss one (1)
    key driver of the below average performance. Suggest one (1) strategy to improve
    the future management of the driver that you’ve discussed.

  • Suppose you work for a hospital that was denied a contract with an HMO last
    year. Legal counsel believes there was a breach of contract and wishes to bring
    suit against the HMO for damages. The chief executive officer has asked you to
    work with the controller to develop a defensible measure of the damages
    experienced during the last year. Create an argument for the reimbursement of
    damages in which you indicate the denial’s resulting impact to patient care.
    Provide support for your argument.

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