Columbia Memorial Hospital Case Study Essay

According to exhibit # 2, in order to break even annually, the clinic will have to cover the total operating expenses of $690,000. That means that the clinic will have to perform 986 scan per year, or approximately 4 scans per day to achieve this goal. Considering that the equipment in the clinic is capable of much more, this operation should have no problem in reaching and exceeding its goal daily if proper measures are put into place.

Before 2012 El Paso, TX never had a children’s hospital. In fact it was the largest metropolis city that did have a pediatric hospital according to (El Paso Childrens Hospital, 2016). El Paso Children’s Hospital serves a dramatically underserved pediatric region where there are approximately 222,000 children that are enrolled with Medicaid in 2011. This statistic demonstrates the magnitude of having a skilled specialty of pediatric services.

Hospital Room (20 days per year for 20 years) = $900 * 10 *20 = $180,000

6. Although you are basically satisfied with the analysis thus far, you are concerned about the

5. Fixed costs can be discretionary or committed. Using your judgment based on the discussion in the case, identify which costs are likely to be discretionary. Assuming that management is able to decrease discretionary fixed costs by 10%, what would be the impact on Bridgestone’s break-even point revenues?

1.) What is the marginal cost estimate of the Phase 4 hospital services, assuming that 60 percent of the designated costs are fixed and the remaining costs are variable?

In the worst case scenario, we assume there is a 5% fluctuation in unit sale price and unit variable

4. Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system? Is there a better way of reporting this revenue? If so, what is it?

During the first pilot study, there was no statistically significant differences in median inpatient occupancy of ED length of stay.

1. Consider the $50,000 excess cash. Assume that Gary invests the funds in one-year CD.

Another threat is the current state of rural hospitals nationwide. According to the case study, about 25% of Americans live in rural areas and only about 10% of physicians actually practice in rural areas. There is a 15% gap in the ratio of rural citizens to available practicing physicians. This is a threat to ELH’s need to attract and hire more physicians. In relation to rural hospitals, citizens have longer drive times to their medical facilities. This causes them to delay routine visits which subsequently exacerbates

Unit CM= $160 average full passenger fare – $70 average variable cost per passenger =$ 90

Mr. Salter asked me to analyze the capitated managed care agreement with the city and determine the full cost profit/loss and the differential cost profit/loss. Then based on this information, determine whether we should renew the contract for the next year at present rates or ask for a rate increase.

Patients have been missing appointments or have canceled required follow up testing which were ordered by providers. These appointments are either canceled or no show within 24hrs before scheduled time. Missed appointments are a cost to the health care system in terms of personnel time, extended waiting lists, and the loss of potentially beneficial services. In the past quarter we have seen a decline in No Show Rate. We have 160 weekly spaces available for appointments in the hospital. The 10 % of the patients did not show up, which equals a total of 16 missed appointments a week at $120 per visit. $1,920 in lost revenue in a week which equals $23,040 in the past 3 months. Which means patients failed to receive a recommended care, and the appointment slots were wasted.

When figuring out the costs for revenues you need to figure out how much the network will earn from all the scans done throughout the five year period. When configuring revenue associated with scans you need to look for total payments which are nineteen thousand and six hundred and ninety then multiple total payments by fifty weeks. This equals out to nine hundred and eighty four thousand and five hundred annually, then multiple the annual revenue by five years. The total scan revenue for five years comes out to four million and nine hundred and twenty two thousand and five hundred dollars. The next amount added to the revenues for the physician’s network is the amount the MRI machine can be salvaged for which are seven hundred and fifty thousand dollars. The next equation to configure is the total revenue costs. How you configure the total revenue costs is by adding the total scan revenues and the salvage costs, which equals out to five million and six hundred and seventy two thousand and five hundred dollars. The final equation is to figure out the net revenues of the MRI machine and that is to take the total revenues and subtract the total expenses for five years. The total revenue is five million and six hundred and seventy two thousand and five hundred and you then subtract the total expenses, which is