Revenue Vs. Profit in Managed Care Contracts

We just started looking at the actual profit we make on every contract. Do you currently look at the profit, or only the revenue side? We acquired cost data by procedure for many hospitals in the country and applied those costs to the claims. We were able to calculate the actual profit on our commercial contracts. Do you look at the profit, and do you have any other applications for this?

 

Is this a real question? Any proposal/contract analysis gauges profitability. Otherwise, you're just throwing darts.