Unformatted text preview: The Chief Financial Officer and the director of planning need to decide which option would be best for the hospital. Best Option The hospital’s management should go with the freestanding facility only if they can expect at least 326 additional medical/surgical admissions annually. The financial analysis shows that the freestanding should not be chosen unless the hospital is suffering from capacity constraints. Contribution margins are appropriate when considering two different choices that affect the business....
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- Spring '11