Develop a Profit and Loss Statement for this Free Standing Center. Please state all your assumptions and explain each of the line items.

Patient Load: 500 patients per year

Distribution of Procedures: 50% IMRT, 40% Definitive, 10% Palliative

Distribution of Payers: 60% Medicare, 40% Private Payers

Revenue: Free Standing Center which collects both Technical can Professional payments

Property and Building: One acre lot with 10,000 square feet building with two linac vaults and supporting space leased at $30K per month.

Fixed Assets: Two Linacs $3M each, One CT $800K, Treatment Planning Software $400K, Oncology Management Software $400K, Computer Network $25K, Physics Equipment $150K; Furniture $15K

Salaries: Two Radiation Oncologists $450K each, One Physicist $150K, Two Dosimetrists $100K each, One Manager $100K, Five Therapists $80K each, Two nurses $80K each, Two Clerks $30K each

Payroll Taxes and Benefits: 25% of Salaries

Support Contracts: Service Contracts for all Fixed Assets

Billing Service: $300K per year

Other Services: $6K per year

Housekeeping: $1K per month

Grounds: Included in Property Lease

Linen: $1K per month

Leases: $30K per month for Property

Loans: $0

Insurance: $220K per year

Taxes: $200K per year

Minor Equipment: $25K per year

Supplies: $2K per month

Utilities: $2K per month

Other Expenses: $10K per year