finance

Panhandle Medical

1. Alternative 1:

Appointment scheduling: 3*0.2*2400 = 1440

Patient check in: 5*0.2*2400 = 2400

Ultrasound testing:

Technician time: 45*0.4*2400 = 43200

Physician time: 1.5*3*2400 = 10800

Supplies: 1*9*2400 = 21600

Patient checkout: 5*0.2*2400 = 2400

Film processing: 10*0.4*2400 = 9600

Film reading: 40*2400 = 96000

Billing and collection: 6.8*2400 = 13620

General administration: 1.25*2400 = 3000

Annual maintenance costs: 1500

Annual depreciation costs: 225000/5 = 45000

Total annual costs for 2400 procedures: 253260

Cost/procedure: 105.53

Alternative 2:

Appointment scheduling: 3*0.2*2400 = 1440

Patient check in: 5*0.2*2400 = 2400

Ultrasound testing:

Technician time: 45*0.4*2400 = 43200

Physician time: 1.5*3*2400 = 10800

Supplies: 1*9*2400 = 21600

Patient checkout: 5*0.2*2400 = 2400

Film processing: 10*0.4*2400 = 9600

Film reading: 40*2400 = 96000

Billing and collection: 6.8*2400 = 13620

General administration: 1.25*2400 = 3000

Transportation and setup: 6*1*2400 = 14400

Annual maintenance costs of van: 1000

Annual maintenance costs: 1000

Annual depreciation costs: 115000/5 = 23000

Total annual costs for 2400 procedures: 246160

Cost/procedure: 102.57

Going by the cost per procedure as above, Alternative 2 is recommendable.