Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

5.4) General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:
Fixed costs $10,000,000
Variable cost per inpatient day $200
Charge (revenue) per inpatient day $1,000
The hospital expects to have a patient load of 15,000 inpatient days next year.
a. Construct the hospital's base case projected P&L statement.
b. What is the hospital's breakeven point?
c. What volume is required to provide a profit of $1,000,000? A profit of $500,000?
d. Now assume that 20 percent of the hospital's inpatient days come from a managed care plan that wants a 25 percent discount from charges. Should the hospital agree to the discount proposal?

5.5) You are considering starting a walk-in-clinic. Your financial projections for the first year of operation are as follows:
Revenues (10,000 visits) $400,000
Wages and benefits $220,000
Rent $ 5,000
Depreciation $ 30,000
Utilities $ 2,500
Medical supplies $ 50,000
Administrative supplies $ 10,000
Assume that all cost fixed, except supply cost, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.
a. Construct the clinic's projected P&L statement.
b. What number of visits is required to break even?
c. What number of visits is required to provide you with an after-tax profit of $100,000?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M925765

Have any Question? 


Related Questions in Basic Finance

Anne has been researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per share. In this case, what interest rate, in perce ...

Why do you suppose that foreign governments provide mncs

Why do you suppose that foreign governments provide MNCs with incentives to undertake FDI in their countries? Explain the theory of comparative advantage as a motive for foreign trade.

Common stock of pr co has an expected return of 12 the

Common stock of pr Co. Has an expected return of 12% . The expected market return is 14% and risk free rate is 2%. What is pr Co.s Beta coefficient?

1 describe integrative management be specific concerning

1. Describe "integrative management." Be specific concerning the relationship between functionality and process. 2. In terms of enterprise extension, describe the importance of the information sharing and process special ...

Assume for this question only that kenny and melissa were

Assume, for this question only, that Kenny and Melissa were married today. They went straight to Kenny's lawyer's office to execute new wills. On the way home from executing a valid will leaving all assets to Melissa, Ke ...

Compare and contrast transaction exposure and economic

Compare and contrast transaction exposure and economic exposure? Why might the cash flows of purely domestic firms be exposed to exchange rate fluctuations? How do most companies deal with economic exposure?

1 credit from utilities how do utilities extend credit and

1. Credit from Utilities. How do utilities extend credit and how can this credit help you establish a credit history? 2. Impact of Credit Report. Explain how a weak credit report can affect you. 3. Credit Bureaus. Name t ...

One bond in forest inc has 9 years to maturity and a coupon

One bond in Forest, Inc., has 9 years to maturity and a coupon of 4.2%. The coupon is paid semiannually. If the YTM is 6%, what is the value of the bond? Marcia Food Company has a bond with 15 years to maturity and a cou ...

1 why must researchers use reliable measures2 why is it

1. Why must researchers use reliable measures? 2. Why is it virtually impossible to eliminate all measurement error from the measures we use in research? 3. What is the relationship between the reliability of a measure a ...

In a mass-transfer spray column a liquid is sprayed into a

In a mass-transfer spray column, a liquid is sprayed into a gas stream, and mass is transferred between the liquid and gas phases. The mass of the drops that are formed from a spray nozzle is considered a function of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen