A not-for-profit hospital realizes a 3 percent return on its 200,000 investment in its home health..
A not-for-profit hospital effectuates a 3 percent repay on its 200,000 investment in its residence soundness part. Its popular produce superveneing discounts and allowances is 382,000. Administrative costs are 119,000, clinical personnel costs are210,000, and supply costs are 47,000. Providing residence soundness regard is not a heart appearance of the hospital, and it earn sell the residence soundness part if it cannot effectuate a repay of at last 12 percent. A process proficiency team has recommended changes to the residence soundness part’s billing processes. The team has concluded that these changes could impair costs by 20,000 and increase revenues by 5,000. Analyze the facts that supervene and assess whether the changes would perform the residence soundness part remunerative ample to practise.