2. Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a breakeven graph that can be included in your report.

Historical Financial Data TMH Urgent Care Center EXHIBIT 6.1 CY 2013 Jan 2014 Feb 2014 52 2013 Monthly Averages Jan Feb 2014 Number of visits Net revenue Torv 14,522 $548,747 1,365 $55,028 1,335 $54,748 1,210 $45,729 1,350 354,888 1.230 $47,037 $154,250 192,000 31.440 5.365 8,112 189 $13,540 18,000 3,215 538 $13,544 18,000 3.215 665 843 $13,542 18,000 3.215 802 843 Cases in Healthcare Finance 843 0 Salaries and wages Physician fees Malpractice insurance Travel and education General insurance Subscriptions Electricity Water Equipment rental Building lease Other operating expenses Total operating expenses 0 1,029 142 11,820 1,260 1,260 155,745 103,779 $665,220 $12,854 16,000 2,620 447 675 16 985 105 105 12,979 8,848 $55,435 1,124 135 105 12,500 8,152 $58, 152 105 $12,952 16,286 2,705 469 700 14 988 110 105 12,910 8,561 $55,810 0 1.077 139 105 12,500 8,038 $59,059 12,500 7.923 $57,966 ($116,473) Net profit loss) $ 3,124) ($ 3,218) ($ 9,706) ($ 3,173) ($ 8,7731 -5.7% -21.2% -5.9% -21.2% -5.8% -18.7% Gross margin (%) CY current year Case 6: Tulsa Memorial Hospital 53 Number of Additional Visits per Day 1-10 11-20 21-30 0 31-40 EXHIBIT 62 TMH Urgent Care Cente Monthly Incremental Cost Data Variable costs $4.00 per visit 1.00 per visit Medical supplies Administrative supplies $5.00 per visit Total variable costs per visit Semifixed Costs Salaries and wages Physician fees $ 5,000 $ 6,000 $ 7,000 $ 8,000 12,000 12,000 12,000 16,000 $ 0 $17,000 $18,000 $19,000 $24,000 Total monthly semifixed costs Fixed Costs Marketing assistant's salary Advertising expenses $ 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 Total monthly fixed costs Historical Financial Data TMH Urgent Care Center EXHIBIT 6.1 CY 2013 Jan 2014 Feb 2014 52 2013 Monthly Averages Jan Feb 2014 Number of visits Net revenue Torv 14,522 $548,747 1,365 $55,028 1,335 $54,748 1,210 $45,729 1,350 354,888 1.230 $47,037 $154,250 192,000 31.440 5.365 8,112 189 $13,540 18,000 3,215 538 $13,544 18,000 3.215 665 843 $13,542 18,000 3.215 802 843 Cases in Healthcare Finance 843 0 Salaries and wages Physician fees Malpractice insurance Travel and education General insurance Subscriptions Electricity Water Equipment rental Building lease Other operating expenses Total operating expenses 0 1,029 142 11,820 1,260 1,260 155,745 103,779 $665,220 $12,854 16,000 2,620 447 675 16 985 105 105 12,979 8,848 $55,435 1,124 135 105 12,500 8,152 $58, 152 105 $12,952 16,286 2,705 469 700 14 988 110 105 12,910 8,561 $55,810 0 1.077 139 105 12,500 8,038 $59,059 12,500 7.923 $57,966 ($116,473) Net profit loss) $ 3,124) ($ 3,218) ($ 9,706) ($ 3,173) ($ 8,7731 -5.7% -21.2% -5.9% -21.2% -5.8% -18.7% Gross margin (%) CY current year Case 6: Tulsa Memorial Hospital 53 Number of Additional Visits per Day 1-10 11-20 21-30 0 31-40 EXHIBIT 62 TMH Urgent Care Cente Monthly Incremental Cost Data Variable costs $4.00 per visit 1.00 per visit Medical supplies Administrative supplies $5.00 per visit Total variable costs per visit Semifixed Costs Salaries and wages Physician fees $ 5,000 $ 6,000 $ 7,000 $ 8,000 12,000 12,000 12,000 16,000 $ 0 $17,000 $18,000 $19,000 $24,000 Total monthly semifixed costs Fixed Costs Marketing assistant's salary Advertising expenses $ 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 Total monthly fixed costs