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Fargo Memorial Hospital has annual net patient service revenues of $132,244. It has two major...

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Fargo Memorial Hospital has annual net patient service revenues of $132,244. It has two major third-party payers, and some of its patients are self-payers. The hospital's patient accounts manager estimates that 17 percent of the hospital's billings are paid (received by the hospital) on Day 30,54 percent are paid on Day 60 , and the remainder are paid on Day 90 . (Assume 360 days per year.) The hospital is considering a proposed electronic claims system that would result in collecting from third-party payers in 45 and 75 days, instead of in 60 and 90 days. Suppose the hospital's annual cost of carrying receivables is 12 percent. If the electronic claims system costs $783 a year to lease and operate, what is the annual net benefit of the new system

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