Better Care Clinic Breakeven Case Study 1 | Documents and Forms | Research Papers

Better Care Clinic Breakeven Case Study 1

Better Care Clinic Breakeven Case Study 1 PLDZ-703 Instant Download Price
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Questions:

Using the historical data as a guide, construct a forecasted profit and loss statement for the clinic's average day for all of 2009 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?

How many additional daily visits must be generated to break even?

Thus far, the analysis has considered the clinic's near-term profitability—that is, an average day in 2009. Redo the forecasted profit and loss statement developed in Question 1 for an average day in 2014, five years hence; assuming that volume stays constant (does not increase). (Hint: You must consider likely changes in revenues and costs due to inflation and other factors. The idea here is to see whether the clinic can "inflate" its way to profitability even if volume remains at its current level).

 

Suppose you just found out that the $3,215 monthly malpractice insurance charge is based on an accounting allocation scheme that divides the hospital’s total annual malpractice insurance costs by the total annual number of inpatient days and outpatient visits to obtain a per-episode charge. Then, the per-episode value is multiplied by each department's projected number of patient days or outpatient visits to obtain each department's malpractice cost allocation. What impact does this allocation scheme have on the clinic’s true (cash) profitability? (No calculations are necessary).

Does the clinic have any value to the hospital beyond that considered by the numerical analysis just conducted? Do the actions by Baptist Hospital have any bearing on the final decision regarding the clinic?

What is your final recommendation concerning the future of the walk-in clinic?

Questions: Using the historical data as a guide, construct a forecasted profit and loss statement for the clinic's average day for all of 2009 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?
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