The payer mix and expected volume (100 cases) for a hospital are as follows:
30 Medicare cases Pay $ 2,000 per case
30 Blue Cross Blue Shield cases Pay $ 2,200 per case
20 Commercial cases Pay 100 percent of charges
10 Medicaid cases Pay average cost
8 Self-pay cases Pay 100 percent of charges
2 Charity cases Pay nothing
Average cost per case is expected to be $2,200, and the average charge per case is $2,500.
Determine the net operating income for the hospital.