Problem:
A hospital treats a Medicare patient who is classified as DRG 134, hypertension, with a case weight of .58. Assume the standardized labor rate is $3,000 and the standardized non labor rate is $1,200.
Question: What amount will the hospital be paid, excluding outlier, capital costs, and other items, if the wage index is 1.5? Please provide step by step solution and show all work.