contribution margin

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contribution margin2016-12-25T19:28:22+00:00

contribution margin

MEDICAL BUSINESS

Definition A metric for reporting financial outcomes in medicine, which is calculated as revenues minus variable costs (the cost of items directly used in a patient’s care–e.g., drugs, tests, food and direct care provided by hospital staff.  

Reference JAMA 2013; 309 (15):1634-4

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