Before making hiring or purchasing decisions, health care organizations must consider whether the decision is financially profitable. By calculating break-even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from an imaging center and calculate break-even points.

To prepare for this Assignment:

Review the Week 8 Assignment 2 document provided to you by the Instructor. Examine the imaging center scenario. Reflect on how you will use the provided financial data to calculate break-even points. Refer to Chapter 9 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications for additional guidance.

Healthcare Financial Management and Economics Week 8 Assignment 2 – Atlantic Imaging Center

Assignment 2: Break Even Point

Before making hiring or purchasing decisions, healthcare organizations must consider whether the decision is financially profitable. By calculating break even points, organizations are able to examine actual costs and make more sound financial decisions. For this Assignment, you use data from the Atlantic Imaging Center and calculate break even points.

Scenario: Atlantic Imaging Center is a small imaging center with two analogue film or screen units. As the director of the center, Juanita Hernandez has been asked to determine if it is financially profitable to hire additional technologists to their current staff of two technologists. She has analyzed the current costs and determined the following:

To prepare for the Assignment:

Examine the Atlantic Imaging Center scenario. Reflect on how you will use the provided financial data to calculate break even points. Refer to Chapter 9 of Financial management of health care organizations: An introduction to fundamental tools, concepts and applications for additional guidance.

The Assignment:

Given the above information, create an Excel spreadsheet showing the following:

1. Solve for monthly volume to break even.
2. Solve for monthly volume needed to break-even at desired $5000 per monthprofit level.
3. Solve for volume needed to break-even at new reimbursement per screen of $55and no profit.
4. Solve for volume needed to break-even with additional labor.

The Assignment:

Given the imaging center scenario and financial data, complete the “Week 8 Assignment 2 Break Even Excel Template”.

To assist with your work related to Week 8 and Assignment #2 specifically, an Excel Tutorial has been provided which is intended to help you navigate the important skill (please check your volume settings). Breakeven Excel Tutorial:
https://mym.cdn.laureate-media.com/2dett4d/Walden/MMHA/6400/CH/mm/excel_tutorials/be.html