This was my original question:

This image is an example of a break-even analysis using the data. As stated below, the idea is to build off this while factoring in other factors.

Information about Employer-Sponsored Health Clinics that can be used in the development of a plan:

Services Include:

Services Include: Primary care for employees, spouses, and dependents (12-26) Unlimited visits, annual physicals, injections, extensive lab work Commonly prescribed medications dispensed onsite Same-day care with limited or no wait time Healthelife personal health information app and communication portal

Clinic Model:

Directed by a dedicated primary care physician and support staff Open Monday-Friday: 7 AM-4 PM. Open during lunch Flat monthly pricingBased on employer participation numbers (7+ employee minimum) No insurance claims filed Integrated Electronic Medical Records (EMR)

Employee Value: Unlimited access to primary care services No co-pays/ No deductible Low-cost medications onsite Not open to the general public Specialist referrals and scheduling assistance Eliminates costly urgent care visits Easy access to medical records on the Healthelife app

SERVICES Our extensive list of services includes, but is not limited to, the following: Allergy and sinus conditions Chronic medical conditions (diabetes, hypertension, etc.) Commonly prescribed medications dispensed onsite Administration of allergy injections(drug provided by patient) Acute eye conditions such as conjunctivitis Throat and ear pain Minor surgical procedures such as small lacerations Abdominal pain Strains and sprains Musculoskeletal concerns Rashes and minor burns Annual physicals Laboratory testing Annual biometric screenings Routine screenings and injections Medication management Pre-college admission packets Sports and camp physicals (ages 12+) Acute injuries (non work-related

Prices:

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 extra cost per visit) Option 3: 7-75 employees per month required $65.00 PEPM (Per Employee Per Month) (No extra cost per visit) Pricing options include unlimited clinic visits and coverage for employees plus eligible dependents aged 12- 26. No insurance claims are filed, and employees have no out-of-pocket costs or co-pays

The idea is to use the above and below information to develop a current break-even analysis for the current year. It is also creating a break-even analysis based on various factors, including if the clinic treated ages under 12 years of age and other factors that may be relevant in making a break-even analysis for expansion of the employer-sponsored clinic. Also, due to the increase in subscribers adding in a second doctor or nurse practitioner and factoring that into the new break-even analysis.

In this planned project, we will investigate the financials of employer-sponsored clinics, provide a break-even analysis, and explore the expansion of employer-sponsored clinics. We will explore how forward-looking employers turn to employer-sponsored health clinics as innovative delivery methods to bring health care directly to workers near their workplaces. These near-site health centers are designed to help businesses control rising healthcare costs by engaging employees and applying a preventative care approach to employee health. Amid healthcare costs rising faster than general economic inflation, employers are searching for methods to provide high-value employee healthcare while effectively controlling costs and getting the most significant value from dollars invested. Below, we will go into more detail on what this project will entail and provide a breakdown of what will be studied.

Value of the Project: This project will provide a comprehensive breakdown of the financials of employer-sponsored clinics, including the cost of running the clinics and the expected return on investment (ROI). It will provide a benchmark for employers considering using the clinics and will provide insight into the viability of such a venture. This project will also give an outlook on expanding employer-sponsored clinics through a breakdown analysis while also looking at how long or what it will take to see a positive ROI and break even.

This is how the questions were answered (I submitted the rating before I got explanation on questions that I had):

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

Fixed Costs:

Rent: Let's assume the clinic is located in a leased space, and the rent is $5,000 per month.

Staff Salaries: Let's assume the salary of the primary care physician is $200,000 per year, and the support staff 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 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 years of age, 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 need to 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, as well as 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%

This would indicate that the employer-sponsored clinic is generating significant value for the organization and is a sound investment. However, it's important to note that ROI calculations can be complex and may require a more detailed analysis of the costs and benefits of the program.

In terms of how long it would take to see a positive ROI and break even, this can vary depending on the cost of running the clinic and the benefits generated by the program. In general, it's likely that it would take at least several months to see a positive ROI and break even, as there are upfront costs associated with setting up the clinic and building awareness among employees. However, once the clinic is established and employees begin using it regularly, it's likely that the benefits generated by the program will outweigh the costs, and the clinic will become a positive financial investment for the organization. It's important to continually evaluate the financial performance of the clinic over time and make adjustments as needed to ensure that it continues to generate value for the organization.

In conclusion, by performing a break-even analysis, we can determine the minimum number of visits needed to cover the fixed and variable costs of running an employer-sponsored clinic. Factors such as treating children under 12 years old and adding a second doctor or nurse practitioner can impact the break-even point. By understanding the financials of these clinics, employers can make informed decisions about implementing and expanding these innovative healthcare delivery methods.

Explanation:

As a business and management professional, I'd be happy to provide further explanations and a step-by-step explanation of how I answered the tasks above.

Task 1: Develop a current break-even analysis for the current year.

To develop a break-even analysis, we need to first calculate the fixed costs and variable costs associated with running the clinic. Fixed costs are expenses that do not change with the number of patients seen, while variable costs do.

To calculate the break-even point, we need to determine how many patients the clinic needs to see in order to cover its fixed and variable costs. We can use the following formula:

Break-even point = Fixed costs / (Price per patient - Variable costs per patient)

Based on the information given, we know that the clinic charges a flat monthly fee to employers based on participation numbers.

Task 2: A break-even analysis based on various factors, including if the clinic treated children under 12 years of age and other factors that may be relevant in making a break-even analysis for the expansion of the employer-sponsored clinic.

A break-even analysis based on various factors, we need to consider how changes in these factors will affect the fixed and variable costs associated with running the clinic. For example, if the clinic were to treat children under the age of 12, there would be additional variable costs associated with treating this population (e.g., additional staffing, equipment, and supplies).

To provide a comprehensive breakdown of the financials of employer-sponsored clinics, we first need to understand the cost of running the clinics. The cost of running a clinic can vary depending on a range of factors, such as the number of employees, the location of the clinic, and the level of services provided.

In the case of the employer-sponsored clinic described in the initial information, we can estimate the cost of running the clinic by examining the pricing options available. Based on the pricing options, we know that the monthly cost per employee ranges from $17 to $65, depending on the number of employees participating. We also know that there is an additional fee of $60 per visit for the lowest-priced option, while the other options include unlimited clinic visits at no extra cost.

Using these numbers, we can estimate the monthly revenue generated by the clinic based on the number of employees participating and the pricing option chosen. For example, if 100 employees participate in the program and the employer chooses Option 2, the clinic would generate $5,500 in monthly revenue ($55.00 PEPM x 100 employees). If we assume that the cost of running the clinic is equal to the revenue generated, we can estimate the monthly cost of running the clinic to be $5,500.

However, it's important to note that this is a very simplified estimate, and the actual cost of running a clinic could be higher or lower depending on a range of factors. For example, if the clinic were to expand its services to treat patients under 12 years old, there could be additional costs associated with hiring pediatric specialists or purchasing specialized equipment.

Approach to solving the question:

Here is a further explanation of my approach to solving the first task and how I answered the subsequent tasks.

First, to calculate the breakeven point, we need to understand the fixed and variable costs of operating the employer-sponsored health clinic. Based on the information provided, we know that the clinic has a flat monthly pricing model and there are no insurance claims filed. We also know that there are three pricing options, and each option has a different minimum number of employees required. To calculate the fixed cost, we need to determine the total cost of operating the clinic, including the cost of the physician, support staff, medical equipment, and any other costs associated with running the clinic. This total cost will be spread out over the number of employees enrolled in the clinic. To calculate the variable cost, we need to factor in the additional cost per visit associated with pricing options.

To answer the subsequent tasks, we would need to consider various factors such as the inclusion of treating patients under 12 years of age and adding a second doctor or nurse practitioner. We would also need to re-evaluate the fixed and variable costs associated with operating the clinic with these changes and recalculate the breakeven point and expected return on investment (ROI). Additionally, we could explore different pricing options, marketing strategies, and other factors that could affect the success and expansion of the employer-sponsored health clinic.

My question are, can the numbers be explained more in detail, maybe using Excel. Could product suggestions be taken into account. Also factoring in how the return may be decreased due to the various factors mentioned.

\begin{tabular}{|c|c|c|} \hline Avg. Monthly Profit & Avg. Monthy Expense & Avg. Monthly Deficit \\ \hline$31,470 & $43,400 & $11,930 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Current } \\ \hline Avg. Monthly Subscribers & Avg. Price per Subscriber \\ \hline 832 & $37.82 \\ \hline \end{tabular} Breakeven Point Option 1 \begin{tabular}{|c|c|c|c|} \hline Employee Count: 550 & Monthy Fee: $17 & 10%/Mo. Visit Rate: 50 & Total \\ \hline \multicolumn{2}{|c|}{$9,350.00} & $3,300.00 & $12,650.00 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline \multicolumn{2}{|c|}{ Breakeven Point Option 2 } \\ \hline Employee Count: 220 & Monthy Fee: $55 \\ \hline \multicolumn{2}{|c|}{$12,100.00} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Breakeven Point Option 3 (Mix) } \\ \hline Employee Count: 400 & Monthy Fee: $17 & 10%/Mo. Visit Rate: 40 & Sub Total \\ \hline \multicolumn{2}{|c|}{$6,800.00} & $2,400.00 & $9,200.00 \\ \hline \multicolumn{2}{|c|}{ plus } & Monthly Visit Fee: $0 & Sub Total \\ \hline Employee Count: 100 & Monthy Fee: $55 & $0 & $2,750 \\ \hline \multicolumn{2}{|c|}{2750} & & Total \\ \hline & & $11,950.00 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Avg. Monthly Profit & Avg. Monthy Expense & Avg. Monthly Deficit \\ \hline$31,470 & $43,400 & $11,930 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Current } \\ \hline Avg. Monthly Subscribers & Avg. Price per Subscriber \\ \hline 832 & $37.82 \\ \hline \end{tabular} Breakeven Point Option 1 \begin{tabular}{|c|c|c|c|} \hline Employee Count: 550 & Monthy Fee: $17 & 10%/Mo. Visit Rate: 50 & Total \\ \hline \multicolumn{2}{|c|}{$9,350.00} & $3,300.00 & $12,650.00 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline \multicolumn{2}{|c|}{ Breakeven Point Option 2 } \\ \hline Employee Count: 220 & Monthy Fee: $55 \\ \hline \multicolumn{2}{|c|}{$12,100.00} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Breakeven Point Option 3 (Mix) } \\ \hline Employee Count: 400 & Monthy Fee: $17 & 10%/Mo. Visit Rate: 40 & Sub Total \\ \hline \multicolumn{2}{|c|}{$6,800.00} & $2,400.00 & $9,200.00 \\ \hline \multicolumn{2}{|c|}{ plus } & Monthly Visit Fee: $0 & Sub Total \\ \hline Employee Count: 100 & Monthy Fee: $55 & $0 & $2,750 \\ \hline \multicolumn{2}{|c|}{2750} & & Total \\ \hline & & $11,950.00 \\ \hline \end{tabular}