PRICING OPTIONS: Option 1: 125+ minimum employees per month required $17.00 PEPM (Per Employee Per Month) + $60.00 additional fee per visit Option 2: 75+ minimum employees per month required $55.00 PEPM (Per Employee Per Month) (No additional cost per visit) Option 3: 7-75 employees per month required $65.00 PEPM (Per Employee Per Month) (No additional cost per visit)

We need to calculate the fixed and variable costs associated with running the clinic to develop a current break-even analysis for the current year. Fixed costs are expenses that do not change based on the volume of services provided, while variable costs vary based on the service volume.

Fixed Costs:

• Rent: Let's assume the clinic is in a leased space, and the rent is $5,000 monthly.
• Staff Salaries: Let's assume the primary care physician's salary is $200,000 per year, and the support staff's salaries total $150,000 per year. This comes out to be approximately $18,750 per month.

Total Fixed Costs = $23,750 per month

Variable Costs:

• Medications: The cost of medications dispensed onsite can vary based on usage. Let's assume that the monthly cost of medications is $3,000.
• Lab work and diagnostic testing: Let's assume the cost of lab work and diagnostic testing is $5,000 per month.
• Supplies and Equipment: Let's assume the cost of supplies and equipment, including medical supplies and an electronic medical record (EMR) system, is $2,000 per month.

Total Variable Costs = $10,000 per month.

Break-even Point: To calculate the break-even point, we need to determine the number of clinic visits needed to cover the monthly fixed and variable costs. We can use the formula:

Break-even Point = Fixed Costs / (Price per Visit - Variable Costs per Visit)

Option 1: Break-even Point = $23,750 / ($60 - $8) = 488.16 visits per month

Option 2: Break-even Point = $55 / $17 = 3.24 visits per employee per month. For 75 employees, the total number of visits per month = 75 * 3.24 = 243 visits per month

Option 3: Break-even Point = $65 / $17 = 3.82 visits per employee per month. For 7 employees, the total number of visits per month = 7 * 3.82 = 26.74 visits per month

If the clinic treated children under 12, we would need to factor in additional expenses such as hiring additional staff, obtaining specialized equipment and supplies, and potentially increasing the cost of medications. The break-even point would likely increase as a result.

If we were to add a second doctor or nurse practitioner to the clinic, we would need to factor in the additional salary expenses. For example, if we added a nurse practitioner with a salary of $100,000 per year, the total staff salary expense would increase to $250,000 per year or approximately $23,438 per month. The break-even point would increase accordingly.

To determine the expected ROI of an employer-sponsored clinic, we must look at the potential benefits and costs associated with the program. The benefits of an employer-sponsored clinic include reduced healthcare costs, improved employee health and productivity, and reduced absenteeism. The costs include the cost of running the clinic and any upfront costs associated with setting up the clinic, such as purchasing equipment or hiring staff.

To calculate the ROI, we need to compare the costs and benefits of the program over a set period, such as a year. For example, if the employer spends $60,000 per year on the clinic and sees a reduction in healthcare costs of $100,000 and improved productivity worth $50,000, the ROI would be calculated as follows:

ROI = (Benefits - Costs) / Costs x 100% ROI = ($150,000 - $60,000) / $60,000 x 100% ROI = 150%

I need help interpreting this data. How were the calculations come up with? Also, I need information on best practices.

PRICING OPTIONS Option I Number of Employee 125+ PEPM 17.00 Additional Costs 60.00 Monthly Rate (inc. additional Costs) 77.00 Monthly Pricing Option {125+} 9,625.00 Monthly Pricing Option {76+} Monthly Pricing Option {at min of 7) Monthly Pricing Option {at max of 75] Annual Price {at 125+] 115,500.00 Annual Price Annual Price {at min of 7] Annual Price {at max of 75} Option ll 75+ 55.00 55.00 4,100.00 50,160.00 Option Ill ' 7-?5 65.00 65.00 455.00 4,075.00 5,450.00 50,500.00 Break-even Point Option I Option II Option III Option Ill If treating 12yo Fixed Costs 34,166.67 34,166.67 34,166.67 34,166.67 42,500 Variable Costs 10,000.00 10,000. 00 10,000.00 10,000. 00 10,000. 00 Total Fixed +Variable Costs 44,166.67 44,166.67 44,166. 67 44,166. 67 52,500.00 Additional Costs 55.00 Break even (visitsi should be equal to the total fixed costs. To compute, no of visits multiplied to the initial number of employees. Ex. 573.59 " 125 No of Visits required to break even [per employee} 4.59 10.57 97.07 9.06 5.45 573.59 803.03 579.49 579.49 44,166.67 44,166.67 44,166.67 44,166.67 No of Visits required to break even Checking 52,500.00