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Glenview Hospital currently has six surgical suites including two Da Vinci robots. The director of surgery is proposing a capital investment in an additional robot.
Glenview Hospital currently has six surgical suites including two Da Vinci robots. The director of surgery is proposing a capital investment in an additional robot. The director has gathered data to assist with the decision-making process. The price of a DaVinci robot is 1,500,000. No additional space is needed since the robot will be utilized in an existing surgical suite. The department already has a robotics coordinator and the surgical staff is trained in robotics procedures. Additional supplies will be needed and they are quite costly. The director determines that the initial investment for the additional robot will be 1,800,000 including 1,600,000 in fixed costs and 200,000 in variable costs. Based on current trends, reimbursement rates range from 5,000 to 25,000 per case based on the complexity of the case. with an average reimbursement (price) of 7,600 per case. The director projects the addition of 125 more robotic cases per year with a cash flow of 950,000 annually. How many robotic cases will be needed to break-even? Use the break even equation. Round off to nearest case number
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