Question description

Healthcare Finance courseUsing the example of “From the Front Lines” in Chapter 6 of your text, calculate the break even for the number of procedures.  Use an electronic spreadsheet to show how you computed the break even and embed the spreadsheet in your paper.  Discuss the impact of the various reimbursements (e.g., Medicare, Medicaid, private, or self-pay).  Think about your upcoming capital proposal and how you might use the break-even analysis in your Capital Investment Plan Proposal.  Your paper should be one to two double-spaced pages in length.From the Front LinesOur robotic equipment and its maintenance represent a fixed cost of $23,320 per month. Thecost-effectiveness of robotic-assisted surgery isrelated to patient volume: With only 10 cases, the fixed cost per case is $2,332, and with 40 cases,the fixed cost per case is $583.Source: Alemozaffar, Chang, Kacker, Sun, DeWolf, & Wagner(2013).From the Front LinesWe recently purchased an endoscopic ultrasound(EUS), which allows doctors to examine thelinings of the esophagus and stomach, as well asthe walls of the gastrointestinal tract. It is anecessary, but expensive, piece of equipment,which cost us $20,000 ($11,000 to purchase, plus$9,000 for renovations). Our fixed costs are fourfull-time equivalent employees at $336,000.Medicare payments are $885 per procedure, andeach procedure requires $175 in average variablecosts. It has been estimated that we will complete500 procedures in the first year and 850procedures in years 2 to 5.Source: Hospital director of outpatient services.

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