Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital.

Discussion 1 “Contract Negotiations and Risks and Operating Margins” Please respond to the following:

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Question 1

In the scenario, the contract negotiations between North Creek Healthcare and the community hospital concluded with an agreement on non-financial (legal) terms. Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital. Indicate the potential implications to the hospital’s financial targets.

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