BHS 427 Health Care Finance (Module 2CBT) Essay Example | Topics and Well Written Essays - 750 words

BHS 427 Health Care Finance (Module 2CBT) - Essay Exampleb. The second alternative is for R square to try to reduce the variable cost per s jakes by improving operational efficiency or replacing experienced staff with relatively inexperienced employees (but ensuring the same quality of work). If variable cost can be reduced to $1,100, the breakeven volume will be 113 and tar frustrate profit of $10,000 will be doable (refer to hobby calculations).... Since R Squared must charge $200 less than the community price of $2,100 to get the contract, the second alternative may be pursued.5. Approximately how many patients will have to be scanned for widely distributed Hospital to make a profit of $20,000 per monthLet,V=Variable cost per scan=$1,200F =Fixed cost=$90,000NI =Targeted net income=$20,000Pi =Internally set price paid by charge payers=$1,200Pe = Externally set fixed price=$1,500CO = relation of cost payers=30%CH = Proportion of charge payers=45%FP = Proportion of fixed-price pay ers=25%The required patient volume is calculated using the following formulaVolume = (1 - CO) F + NI / (CH x Pi) + (FP x Pe) - (1 - CO) VVolume = (1 - 0.3) x 90,000 + 20,000 / (0.45 x 1,200) + (0.25 x 1,500) - (1 - 0.3) x 1,200Volume = 63,000 + 20,000 / 540 + 375 - 840Volume = 83,000 / 75Volume = 1,106 patientsHence, out of total 1,318 patients (482 in-patient and 836 out-patient) per month, 1,106 patients will have to be scanned for widely distributed Hospital to make a profit of $20,000 per