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Box 26 FPAcF 28
because of inflation, if you would look historically,
hospital rates over the last five years in most incidences
have doubled, or approximately doubled.
In Lowrance's case, that is true during that period
of time, their rates have increased substantially primarily
because of inflation. But also during that period of
time, North Carolina has remained one of the lowest
cost hospital states in the nation. It ranks roughly
40 or 41st in cost per patient day.
Also during that same period of time, when these
rates were increasing at such a dramatic rate, Lowrance's
rates in its bed group in the state of North Carolina
remained among the lowest in its group.
Now in projecting rates and in preparing projections,
these are based on facts and circumstances, assumptions,
and estimates. You heard a while ago that there was
really a fairly nominal between what the projected rates
would be under the new project as they would be if the
project were not contemplated at all. To be a little
bit more accurate, in these projects if you take the
period from fiscal 82 through fiscal 87, Lowrance's
rates were projected to increase an average of 12.8%
with the project as proposed. Without the project,using
CM