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Some healthcare employers have offered reduced amounts of cash severance and replace some of the severance value by offering:
Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.
Operating Capacity
The maximum output that a company can produce under normal circumstances over a specific period.
Sunk Costs
Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.
Opportunity Costs
The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.
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