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Use number 2 as instruction and finished the calculation template attached© 2020 Laureate Education, Inc. Page 1 of 1Healthcare Financial

April 23, 2024

Use number 2 as instruction and finished the calculation template attached

Healthcare Financial Management and Economics

Week 8 Assignment 2 — Northern Plains Imaging Center

Assignment 2: Break-Even Point Formulas

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 Northern Plains Imaging
Center and calculate break-even points.

Scenario: Northern Plains 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 the current staffing is correct for her place or should she
add another aide. She currently uses 2 mammography units, 2 Certified
Technologists, and 1 aide. She has analyzed the current costs and determined the
following:
Reimbursement per screen $85
Equipment lease per month ($800 per machine) $1600
Certified Technologists costs per mammography ($25 per Tech) $50
Technologist aide per mammography $5
Variable cost per mammography $10
Equipment maintenance per month ($700 per machine) $1400

To prepare for the Assignment:

Examine the Northern Plains Imaging Center scenario. Reflect on how you will use the
provided financial data to calculate break-even points. Refer to Chapter 11 of Gapinski’s
Understanding Healthcare Financial Management for additional guidance.

The Assignment:

Given the above information, use the “Week 8 Assignment 2 Break Even Excel
Template” to answer these items as a Department:

A. Solve for monthly volume to break even.
B. Solve for monthly volume needed to break even at desired $5,000 per month

profit level.
C. Solve for volume needed to break even at new reimbursement of $55 per screen

and no profit.
D. Solve for volume needed to break even with one(1) additional aide.

Your Assignment is due by Day 7 of Week 8.

Healthcare Financial Management and Economics
Week 8 Assignment 2 — Northern Plains Imaging Center

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