FAQ 3
Spring 2018 MAR 4804/P80 (Tues.)
Financial/Analytical Question #3: note that there are conceptual issues in each of the Financial Assignments. You should specifically identify any assumptions that you make and justify the decision(s) made.
Answer FAQ#3 below, it is based on Pate Memorial Hospital WS#9: the submission is due on Thursday, March 1, at 9:00 PM. Note: 0.5 points will be deducted for each hour, or part thereof, that a submission is late, with a maximum of 5 points per 24 hours. This is based on 20 points per question!
a) Prospective financial impact of the PMH clinic adding GYN services.
No. of visits (see case p. 9) : 2000
Visits per patient per year (p. 9) : 1.5 (estimate)
i.e. # of Gyn. patients : 1333
Charge per visit : $104
Additional GYN Insurance Premium (annual): $25,000.00
Projected annual revenue :
Incremental physician cost @ $70/hour :
No. of hours = (16 x 52) :
Total of physician cost : $
i.e. Net contribution* of GYN services per year : $ (8)
b) Given the above, what is the breakeven number of patient visits per year? Explain your logic. (8)
c) Evaluate the likelihood that the PMC will attract 2000 GYN patient visits per year. (4)
(* assumes no other incremental costs – unlikely).
Note: points are in parentheses.
The submission (FAQ #3) is due 3/1 (Thursday) at 9:00PM. (Use Messages function on BB). You are to submit on either an individual basis or in collaboration with one other student. You may not collaborate with a specific student more than once. Do not discuss the assignment with any other students. If you use a reference you should cite the source.
Either type answers in MSWord or scan to a pdf file. Do not use JPEG! Make sure that your name is on the FILE itself. (1 point deduction if omitted)
Note: 0.5 points may be deducted for each hour, or part thereof, that a submission is late, with a maximum of 5 points per 24 hours. This is based on 20 points per question!
Spring 2018
MAR 4804/
P80
(
Tues
.)
Financial/Analytical Question
#
3
: n
ote that there are con
ceptual
issues in each of the
Financial Assignments. You should specifically
identify any assumptions that you make and justify the decision(s)
made.
Answer
FAQ#3
below
, it is based on
Pate Memorial Hospital
WS#9:
t
he submission is due on
Thurs
day,
March 1
, at
9
:00 PM.
Note: 0.5
points will be deducted for each hour, or part thereof, that a
submission is late, with a maximum of 5 points per 24 hours. This is
based on 20 points per question!
a)
Prospective financial impact of the PMH clinic adding
GYN
services.
No. of
visits
(see case p. 9)
:
2000
Visits per patient per year (p. 9)
:
1.5 (estimate)
i.e. # of Gyn.
patients
:
1333
Charge per visit
:
$104
Additional
GYN
Insurance Premium
(annual)
:
$25,000.00
Projected
annual revenue
:
Incremental physician cost @ $70/hour
:
No. of hours = (16 x 52)
:
Total of physician cost
:
$
i.e.
Net
contribution*
of GYN services
per y
ear
:
$
(8)
b)
Given the above
,
what is the
breakeven
number of
patient visits
per
year
? Exp
l
ain
your logic.
(8)
Spring 2018 MAR 4804/P80 (Tues.)
Financial/Analytical Question #3: note that there are conceptual
issues in each of the Financial Assignments. You should specifically
identify any assumptions that you make and justify the decision(s)
made.
Answer FAQ#3 below, it is based on Pate Memorial Hospital WS#9:
the submission is due on Thursday, March 1, at 9:00 PM. Note: 0.5
points will be deducted for each hour, or part thereof, that a
submission is late, with a maximum of 5 points per 24 hours. This is
based on 20 points per question!
a) Prospective financial impact of the PMH clinic adding GYN
services.
No. of visits (see case p. 9) : 2000
Visits per patient per year (p. 9) : 1.5 (estimate)
i.e. # of Gyn. patients : 1333
Charge per visit : $104
Additional GYN Insurance Premium (annual): $25,000.00
Projected annual revenue :
Incremental physician cost @ $70/hour :
No. of hours = (16 x 52) :
Total of physician cost : $
i.e. Net contribution* of GYN services per year : $ (8)
b) Given the above, what is the breakeven number of patient visits per
year? Explain your logic. (8)