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 Northern Plains Imaging Center and calculate break-even points.

Scenario: Northern Plains 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 aide. She currently uses 2 mammography units, 2 Certified Technologists, and 1 aide. She has analyzed the current costs and determined the following: Reimbursement per screen $85 Equipment lease per month ($800 per machine) $1600 Certified Technologists costs per mammography ($25 per Tech) $50 Technologist aide per mammography $5 Variable cost per mammography $10 Equipment maintenance per month ($700 per machine) $1400

To prepare for the Assignment:

Examine the Northern Plains Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 11 of Gapinski’s Understanding Healthcare Financial Management 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:

A. Solve for monthly volume to break even. B. Solve for monthly volume needed to break even at desired $5,000 per month

profit level. C. Solve for volume needed to break even at new reimbursement of $55 per screen

and no profit. D. Solve for volume needed to break even with one(1) additional aide.

Your Assignment is due by Day 7 of Week 8.

Healthcare Financial Management and Economics

Week 8 Assignment 2 — Northern Plains Imaging Center

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