Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the following question using the date given. You are interviewing for a new position as an administrator for a Brooklyn-based community based healthcare

image text in transcribed

please answer the following question using the date given.

image text in transcribed
You are interviewing for a new position as an administrator for a Brooklyn-based community based healthcare clinic. You are given the following scenario to complete as part of the job interview process competitive position, so you must show your prospective employer that you have the analytical and excel skills to be selected for this position. Assume that all costs are fixed, except administrative and medical supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate. a. Construct the clinic's projected P&L statement. b. What number of visits is required to break even? c. What number of visits is required to provide you with profit of $100,500? d. Now assume the Clinic contracts with one HMO, which proposes as 25% discount from charges on 35% of its patients. Comparing BOTH accepting AND rejecting the contract, what would you advise your prospective employer? YOU HAVE BEEN ASKED TO SHOW PROFIT AND LOSS STATEMENTS FOR BOTH SCENARIOS, INCLUDING CONTRIBUTION MARGINS! The clinic's financial projections and assumptions for the first year of operations are as follows: Revenues (12,500 visits) $525,000 Wages and benefits $225,000 Rent $6,000 Depreciation $30,000 Utilities $2,500 Medical supplies $52,000 Administrative supplies $12,000 Number of visits 12,500 Per visit Revenue $42.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles and Applications

Authors: Sheridan Titman, Arthur J. Keown, John H. Martin

13th edition

134417216, 978-0134417509, 013441750X, 978-0134417219

More Books

Students also viewed these Finance questions

Question

Define self-discipline and cite its benefits.

Answered: 1 week ago

Question

Explain the difference between outcome and process quality.

Answered: 1 week ago

Question

Provide an example of each of the five areas of service quality.

Answered: 1 week ago

Question

How does CRM lead to opportunities for customer loyalty?

Answered: 1 week ago