Reference no: EM132679193

Break-Even Point Formulas Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions.

For this Assignment, you use data from the Southern Hills Imaging Center and calculate break-even points.

Scenario: Southern Hills Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Bob Jones has been asked to determine if the current staffing is correct for his place or should he add another Certified Technologist. He currently uses 2 mammography units, 2 Certified Technologists, and 1 aide. He has analyzed the current costs and determined the following:

Reimbursement per screen $135 Equipment lease per month ($10000 per machine) $20000 Certified Technologists costs per mammography ($34 per Tech) $68 Technologist aide per mammography $16 Variable cost per mammography $12 Equipment maintenance per month ($5000 per machine) $10000

To prepare for the Assignment: Examine the Southern Hills Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points.

Refer to Chapter 11 of Gapinski's Understanding Healthcare Financial Management for additional guidance. The Assignment: Given the above information, use the "Week 8 Assignment 2 Break Even Excel Template" to answer these items as a Department:

A. Solve for monthly volume to break even.

B. Solve for monthly volume needed to break even at desired $5,000 per month profit level.

C. Solve for volume needed to break even at new reimbursement of $105 per screen and no profit.

D. Solve for volume needed to break even with one(1) additional Certified Technologist.