Sign In Folder Google Drive Full Downic on margin percentage MINI-CASE STUDY Suppose that you are the administrator of a physician's of fice practice, and the physician owners have asked you for a presentation on improving profitability without raising rates. Using both exhibits 8.5 and 8.6, explain how profit can be increased. ven analysis in a capitated environment ecessary to cover fixed costs and where 177 > ImtfXzE4MzkwNThfXOFOO?sid=b8d02346-da3c-43f1-b6a3-3a56d08111cf@pdc-v-sessmgr05&vid=0& * Export Permalink Share Google Drive PROBLEM 8.5 Breakeven Analysis for Capitated Revenue ABC Outpatient Clinic is considering a capitated agreement with an insurance company whereby the clinic would provide outpatient coverage to a 1,000-member plan at $100 per member per month. Variable costs are projected at $150 per clinic visit, and fixed costs allocated to the agreement are $600,000 per year. What is the breakeven point in volume of clinic visits? Profit = Revenue - (Fixed costs + [Variable cost per unit x Volume]) $0 = $1,200,000 - ($600,000 + [$150 x Volume) Volume = 4,000 clinic visits (more than 4,000 clinic visits would result in a loss) Profit = Revenues - Expenses where Revenues = (Charge x Volume) and where Expenses - (Fixed costs) + (Variable cost per unit x Volume) 178 > + erates $1 Home - Students C HP 450 Syllabus - HP-450- Introduction to the Fina x ook/bmxlmtfXzE4MzkwNTHIXOFO0?sid=b8d02346-da3c-43f1-b6a3-3a56008111d@pdc-v-sessmgros&vid=0& Sign In onary Export Permalink Share Google Drive Introduction to the Financial Management of Healthcare Organizations Total revenue Breakeven point in revenue Charge/Cost Total costs Variable costs per unit Fixed costs per unit Volume Breakeven point in units Related to costs per period, the breakeven point is the volume in units at which the real restantelina interarte harnelline erwartenlenete letalinn