As a hospital administrator, you receive a call from a colleague at another hospital. Your colleague, who is a friend, informs you that he has received a demand for a stipend from the ophthalmologists who take ED calls at his hospital, and they want a sizable raise. He asks you what you pay for that type of call and suggests that you could both benefit by coming up with a standard rate of pay over which neither of you will go in response to physician demands. It could save your hospitals $600,000 to do this. What is your response, and what is the rationale for it?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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As a hospital administrator, you receive a call from a colleague at another hospital. Your colleague, who is a friend, informs you that he has received a demand for a stipend from the ophthalmologists who take ED calls at his hospital, and they want a sizable raise. He asks you what you pay for that type of call and suggests that you could both benefit by coming up with a standard rate of pay over which neither of you will go in response to physician demands. It could save your hospitals $600,000 to do this. What is your response, and what is the rationale for it?
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