Application Question:
Please read the following case study and discuss the questions below in your post. Case 6: Tulsa Memorial Hospital: Break-even analysis Download Case 6: Tulsa Memorial Hospital: Break-even analysis
, This week’s applied discussion will again differ from other Health Sciences discussions. You will apply what you have learned to perform financial calculations based on the case study and then make recommendations. For this discussion, we will go through the questions together one at a time.
Using the historical data as a guide, in exhibit 6.1, we’ll use the January/February 2014 average for the number of visits and net revenue, because the case states that (1) clinic usage is not seasonal and (2) a competitor recently closed its doors. These facts lead us to conclude that the most recent historical data is the best estimate for the future. For the remaining cash flows, we use either the 2013 average monthly data or the January/February 2014 average or the combined average, depending on which historical amount we thought to be most representative of the future. Using this data we conclude the Breakeven occurs at approximately 20 incremental visits (65 daily patient visits) without a new marketing plan. Would you recommend keeping the clinic open? Explain your reasoning.
Based on the data, let’s say we will implement the proposed marketing program. The added costs push the breakeven point out further. Now, breakeven occurs at about 28 incremental daily visits (73 visits per day). Would you recommend keeping the clinic open with a marketing program? Explain your reasoning. Based on this case study, discuss the benefits of conducting a breakeven analysis and looking at the effects of inflation.
Application Question: Please read the following case study and discuss the quest
Need help With this Or a Simmilar Assignment
We will write a custom essay on your topic tailored to your instructions!