Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Remaining Time: 2 hours, 14 minutes, 16 seconds Question Completion Status: A group of physicians in the Bowling Green metro area have poorly managed their

image text in transcribed
Remaining Time: 2 hours, 14 minutes, 16 seconds Question Completion Status: A group of physicians in the Bowling Green metro area have poorly managed their practice in the past. As a result, they have decided to contract with your physician practice management firm. Given the information they provided, you determined the following. In 2018, the group received approximately $80 per patient in revenue, while the cost of providing the care was approximately $50 per patient. The foxed costs needed to establish and run the clinic is estimated to be approximately $ 10 million dollars. Please address the following questions: a: How many patients did the physician practice have to see in order to break even? To make 1 million and then 2 million dollars in profit. Also, which breakeven would be categorized as accounting breakeven and economic breakeven, what is the difference between the two? (10 points) b: What generic strategies would you advise them to undertake so that they can better their chances of hiting their profit targets? (5 Points) You have also performed an extensive external environmental analysis and have noted that United Health Group, which is one of the main payers for the physician practice, has been aggressively renegotiating reimbursement contracts. It is highly likely that approximately 50% of the current $80 per patient revenue contract will be reduced to approximately $70 c: If this should happen, would you advise the group to reject the proposal or accept the proposal? Why? (Use the previous calculated breakeven number and calculate both scenarios associated with accepting and rejecting the proposal) (15 points) For the tobar, press ALT F10 Por ALTFNF10 (MC MacBook Air $ 4 % 5 & 7 6 #00 9 0 E R T Y o 22 7 F G H J K L > V B N M ? 1 command option

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

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel

3rd Edition

0470377852, 978-0470377857

More Books

Students also viewed these Accounting questions