Homework Answers
Given data:
Charges per mammogram: $225
Average number of mammograms performed in a month: 200
Total monthly expenses related to mammogram procedure: $30,000
1. Average cost ratio for the mammogram procedure
Average monthly expenses of mammogram = 30,000$
Average monthly earnings from mammograms= number of mammograms performed per month * charges per mammogram
= 200 X 225 $
= 45000$ per month
Cost to expense ratio= average monthly cost: average monthly earning
= 4500:30000
=1.5 : 1
Hence the monthly cost benefit ratio is 1.5:1 or 50 percent.
1.
A. Average monthly earnings from mammograms= number of mammograms performed per month * charges per mammogram
= 200 X 225 $
= 45000$ per month
Total monthly expenses: 30,000$
: Since the monthly earning is more than monthly expenses, hence group practice is making a profit.
B. Amount of profit per mammogram
Profit per mammogram = Net profit from all mammograms/ total number of mammograms
= 15000$ / 200
= 75$ per mammogram
There is a net profit of 75$ per mammogram
Or it can also be calculated by another method as
Cost per mammogram procedure=
Total monthly expense of mammogram procedures in a month/Total number of mammograms performed in a month
=30000/200= 150$
Charges of mammogram procedure = 225$
Net profit= charges – cost
= 225-150
=75 $
C. Net monthly profit / earning = monthly earnings – monthly expenses
= 45,000 – 30,000$
=15,000$
There is net profit of 15,000$ Per month.
Add Answer to:
CASE STUDY 2 A group practice of radiologists charges $225 for a routine mammogram. Total expenses...
Mapleton Family Medicine Case Study Mapleton Family Medicine is a physician group practice located in a...
Mapleton Family Medicine Case Study Mapleton Family Medicine is a physician group practice located in a small city (population 150,000) in the Midwest. Mapleton is an eight physician practice consisting of family physicians, internists, and pediatricians. The practice is owned by two of the physicians; the other six physicians are salaried. The owners are concerned with productivity and quality in the practice. The waiting time for appointments is relatively long, and a recent chart review revealed that the percentage of...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000?...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000? e. Complete...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). P & L Statement Revenue 750,000 (100 x 7500) Variable Costs -187,500 (25 x 2500) Contribution 562,500 Fixed Costs -500,000 Net income/profit 62,500 b. What is...
2. Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number...
2. Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician 2,748,360 1,557,615 12,353 1,941 5,333 a. What is the group's revenue per physician? b. What is the group's operating cost per physician? c. What is the group's total operating profit? d. Using your answer in letter C, what is the group's profit per physician? In letter c,...
Denzel Armstrong Case Study Welcome to Dr. Jones’s busy general practice clinic where he sees patients...
Denzel Armstrong Case Study Welcome to Dr. Jones’s busy general practice clinic where he sees patients of varying ages. You are one of three RNs in the clinic and your general duties include assessment, patient education, assistance with minor dressing changes, obtaining routine labs (i.e. urine, blood etc.) to name just a few. You have been a nurse for five years and feel very comfortable in this environment. On this day, you have a student nurse, Mary, assigned to work...
Lung Cancer & Smoking Case Study A causal relationship between cigarette smoking and lung cancer was...
Lung Cancer & Smoking Case Study A causal relationship between cigarette smoking and lung cancer was first suspected in the 1920s on the basis of clinical observations. To test this apparent association, numerous epidemiologic studies were undertaken between 1930 and 1960. Two studies were conducted by Richard Doll and Austin Bradford Hill in Great Britain The first was a case-control study begun in 1947 comparing the smoking habits of lung cancer patients with the smoking habits of other patients. The...
Case Study 2: What are the proper entries for the following three transactions listed in the...
Case Study 2: What are the proper entries for the following three transactions listed in the following three questions? American Construction Company, Inc. started operations on January 2, 2010. American was awarded the contract for Project 101 during January. Bid price was $200,000. Estimated project cost was $180,000. Review the demonstration problem within the text for a complete explanation for entering January’s transactions into the general journal, posting to account ledgers, closing out and finding ending balances for accounts as...
We are going to assume the class is a group of policy makers at a large...
We are going to assume the class is a group of policy makers at a large insurance company – ABC HMO. Part of our pay is based on the company's financial performance for the current year. Specifically, the company looks at actual vs. projected medical expenses per member. The expected is based on last year's actual adjusted for inflation. One of our planners read the below article in the NY Times and recommends we reduce our coverage of routine breast...
CASE STUDY: Financial Management You are the CFO of Amityville Hospital. It is a 250-bed, for-profit...
CASE STUDY: Financial Management You are the CFO of Amityville Hospital. It is a 250-bed, for-profit hospital renowned for its cardiology unit. The hospital has 300 employees, including 125 physicians with staff privileges. Amityville is located in a thriving community that represents its primary service region. There are many high-tech companies and industries in the area that attract families and retirees from around the United States. The area has a mild climate and offers an excellent educational environment that includes...
2. Northeast Medical Group, a family practice, has the following financial data and operational metrics: Number of physicians Total revenue Total operating costs Total procedures per physician Patients per physician Visits per physician 2,748,360 1,557,615 12,353 1,941 5,333 a. What is the group's revenue per physician? b. What is the group's operating cost per physician? c. What is the group's total operating profit? d. Using your answer in letter C, what is the group's profit per physician? In letter c,...
Lung Cancer & Smoking Case Study A causal relationship between cigarette smoking and lung cancer was first suspected in the 1920s on the basis of clinical observations. To test this apparent association, numerous epidemiologic studies were undertaken between 1930 and 1960. Two studies were conducted by Richard Doll and Austin Bradford Hill in Great Britain The first was a case-control study begun in 1947 comparing the smoking habits of lung cancer patients with the smoking habits of other patients. The...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago