Chapter Exercises 1. In the HMO vaccination program example, analyze the situation if the…

Chapter Exercises1. In the HMO vaccination program example, analyze the situation if theprobability of a flu outbreak is only 65 percent and the cost of the vacci-nation program is $8 million. What would your decision be in this case?2. In the DRG case-mix problem, VVH has determined that it could con-vert 15 of its routine beds to ICU beds for a cost of $2,000. Whatshould VVH do and why?

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