Managing Financial Operations You are the Director of Finance for ABC Hospital a

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Managing Financial Operations
You are the Director of Finance for ABC Hospital
and you were asked by department supervisors
in finance and accounting to discuss and address
the staff on the following: The impact of what
would happen financially to the organization over
time if its prices were set at full costs and the
impact of prices if they were set at marginal
costs, the importance of the P&L statement and
breakeven analysis. Provide examples and
rationale for your responses.
Part 1| Include in your discussion to the staff
the difference between a price setter and a price
taker and explain if most providers may be
classified strictly as price-setters or price takers.
Part 2 | Include in your discussion the concept of
price shifting and target costing, making sure to
apply it to your context and the current
healthcare environment. Discuss the importance
of ethical principles in healthcare pricing.

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