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Healthcare Financial Management and Economics Week 8 Assignment 2 — Gulf Imaging Center

Assignment 2: 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 Gulf Imaging Center and calculate break-even points.

Scenario: Gulf Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hernandez has been asked to determine if the current staffing is correct for her place or should she add another technologist. She currently uses 2 mammography units, 2 technologists, and 1 aide. She has analyzed the current costs and determined the following:

To prepare for the Assignment:

Examine the Gulf Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications 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:

1. Solve for monthly volume to break even.
2. Solve for monthly volume needed to break even at desired $5,000 per monthprofit level.
3. Solve for volume needed to break even at new reimbursement of $110 perscreen and no profit.
4. Solve for volume needed to break even with an additional technologist.

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