Develop a Profit and Loss Statement for this Free Standing Center. Please state all your assumptions and explain each of the line items.
Patient Load: 500 patients per year
Distribution of Procedures: 50% IMRT, 40% Definitive, 10% Palliative
Distribution of Payers: 60% Medicare, 40% Private Payers
Revenue: Free Standing Center which collects both Technical can Professional payments
Property and Building: One acre lot with 10,000 square feet building with two linac vaults and supporting space leased at $30K per month.
Fixed Assets: Two Linacs $3M each, One CT $800K, Treatment Planning Software $400K, Oncology Management Software $400K, Computer Network $25K, Physics Equipment $150K; Furniture $15K
Salaries: Two Radiation Oncologists $450K each, One Physicist $150K, Two Dosimetrists $100K each, One Manager $100K, Five Therapists $80K each, Two nurses $80K each, Two Clerks $30K each
Payroll Taxes and Benefits: 25% of Salaries
Support Contracts: Service Contracts for all Fixed Assets
Billing Service: $300K per year
Other Services: $6K per year
Housekeeping: $1K per month
Grounds: Included in Property Lease
Linen: $1K per month
Leases: $30K per month for Property
Loans: $0
Insurance: $220K per year
Taxes: $200K per year
Minor Equipment: $25K per year
Supplies: $2K per month
Utilities: $2K per month
Other Expenses: $10K per year