Using the historical data as a guide construct a pro forma (forecasted) profit and loss statement...

 

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Using the historical data as a guide construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2010 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a break-even graph that can be included in your report. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented. Monthly Averages CY 2009 Jan 2010 Feb 2010 2009 Jan/Feb 2010 Total Number of visits 14,522 1,365 1,335 1,210 1,350 1,230 Net revenue $548,747 $55,028 $54,748 $45,729 $54,888 $47,037 Salaries and wages $154,250 $13,540 $13,544 $12,854 $13,542 $12,952 Physician fees 192,000 18,000 18,000 16,000 18,000 16,286 Malpractice insurance 31,440 3,215 3,215 2,620 3,215 2,705 Travel and education 5,365 538 665 447 602 469 General insurance 8,112 843 843 676 8431 700 Subscriptions 189 0 0 16 0 14 Electricity 11,820 1,124 1,029 985 1,077 998 Water 1,260 135 142 105 139 110 Equipment rental 1,260 105 105 105 105 105 Building lease 155,745 12,500 12,500 12,979 12,500 12,910 Other operating expenses 103,779 8,152 7,923 8,648 Total operating expenses $665,220 $58,152 $57,966 $55,435 Net profit (loss) ($116,473) ($ 3,124) ($ 3,218) ($ 9,706) ($ 3,173) 8,038 $58,059 8,561 $55,810 ($ 8,773) Gross margin (%) -21.2% -5.7% -5.9% -21.2% -5.8% -18.7% EXHIBIT 6.2 Columbia Walk-In Clinic: Monthly Incremental Cost Data 54 Cases in Healthcare Finance Variable Costs 0 Number of Additional Visits per Day 1-10 11-20 21-30 31-40 Medical supplies Administrative supplies Total variable costs per visit Semifixed Costs Salaries and wages Physician fees Total monthly semifixed costs Fixed Costs Marketing assistant's salary Advertising expenses Total monthly fixed costs $3.00 per visit 0.50 per visit $3.50 per visit $ 4,000 $5,000 $6,000 $7,000 10,000 10,000 10,000 20,000 0 $14,000 $15,000 $16,000 $27,000 $3,000 $3,000 $3,000 $3,000 $3,000 4,000 4,000 4,000 4,000 4,000 $7,000 $7,000 $7,000 $7,000 $7,000 Using the historical data as a guide construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2010 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a break-even graph that can be included in your report. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented. Monthly Averages CY 2009 Jan 2010 Feb 2010 2009 Jan/Feb 2010 Total Number of visits 14,522 1,365 1,335 1,210 1,350 1,230 Net revenue $548,747 $55,028 $54,748 $45,729 $54,888 $47,037 Salaries and wages $154,250 $13,540 $13,544 $12,854 $13,542 $12,952 Physician fees 192,000 18,000 18,000 16,000 18,000 16,286 Malpractice insurance 31,440 3,215 3,215 2,620 3,215 2,705 Travel and education 5,365 538 665 447 602 469 General insurance 8,112 843 843 676 8431 700 Subscriptions 189 0 0 16 0 14 Electricity 11,820 1,124 1,029 985 1,077 998 Water 1,260 135 142 105 139 110 Equipment rental 1,260 105 105 105 105 105 Building lease 155,745 12,500 12,500 12,979 12,500 12,910 Other operating expenses 103,779 8,152 7,923 8,648 Total operating expenses $665,220 $58,152 $57,966 $55,435 Net profit (loss) ($116,473) ($ 3,124) ($ 3,218) ($ 9,706) ($ 3,173) 8,038 $58,059 8,561 $55,810 ($ 8,773) Gross margin (%) -21.2% -5.7% -5.9% -21.2% -5.8% -18.7% EXHIBIT 6.2 Columbia Walk-In Clinic: Monthly Incremental Cost Data 54 Cases in Healthcare Finance Variable Costs 0 Number of Additional Visits per Day 1-10 11-20 21-30 31-40 Medical supplies Administrative supplies Total variable costs per visit Semifixed Costs Salaries and wages Physician fees Total monthly semifixed costs Fixed Costs Marketing assistant's salary Advertising expenses Total monthly fixed costs $3.00 per visit 0.50 per visit $3.50 per visit $ 4,000 $5,000 $6,000 $7,000 10,000 10,000 10,000 20,000 0 $14,000 $15,000 $16,000 $27,000 $3,000 $3,000 $3,000 $3,000 $3,000 4,000 4,000 4,000 4,000 4,000 $7,000 $7,000 $7,000 $7,000 $7,000

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To answer your questions lets analyze the provided data and calculate the projected profit and breakeven points 1 Pro Forma Profit and Loss Statement ... View the full answer