Reimbursement per screen 66.05
Equip cost/mo 1450.00
technologist cost per Mammography $15.60
tech aid/per $3.10
Variable cost per mamo $15.00
Equip. maintanance/mo. per machine $916.66
1) what is the monthly patient volume needed per month to cover fixed and variable costs?
2)Patient volume needed per mo. to cover fixed and variable costs and make a $5000,00 profit on this equipment to cover other costs assoc. with organization
3) If reimbursement decreases to 60.00 per screen what is pt. volume needed monthly to cover fixed and variable cost but not profit
4) if new tech aide is hired, what is the patient volume needed at original reimbursement rate to variable costs, but not profit.
Please help as I am struggling!!!
Sure, I can help you with these calculations. Here are the steps to find the answers to each question:
1) To calculate the monthly patient volume needed to cover fixed and variable costs, you need to add up the fixed costs and divide by the contribution margin.
Fixed costs = Equipment cost/month + Equipment maintenance/month per machine
= $1450 + $916.66
= $2366.66
Contribution margin = Reimbursement per screen - Variable cost per mamo
= $66.05 - $15.00
= $51.05
Monthly patient volume needed = Fixed costs / Contribution margin
= $2366.66 / $51.05
≈ 46.33
≈ 47 patients (rounded up)
Therefore, you would need approximately 47 patients per month to cover fixed and variable costs.
2) To calculate the patient volume needed to cover fixed and variable costs and make a $5000 profit, you need to add the profit to the fixed costs and divide by the contribution margin.
Total costs (including profit) = Fixed costs + Profit
= $2366.66 + $5000.00
= $7366.66
Monthly patient volume needed = Total costs / Contribution margin
= $7366.66 / $51.05
≈ 144.21
≈ 145 patients (rounded up)
Therefore, you would need approximately 145 patients per month to cover fixed and variable costs and make a $5000 profit.
3) To calculate the patient volume needed at a decreased reimbursement rate to cover fixed and variable costs (but not profit), we can use the same calculation as in question 1, but with the decreased reimbursement rate.
Reimbursement per screen (decreased) = $60.00
Contribution margin (decreased) = Reimbursement per screen (decreased) - Variable cost per mamo
= $60.00 - $15.00
= $45.00
Monthly patient volume needed = Fixed costs / Contribution margin (decreased)
= $2366.66 / $45.00
≈ 52.59
≈ 53 patients (rounded up)
Therefore, you would need approximately 53 patients per month to cover fixed and variable costs (but not profit) at a decreased reimbursement rate.
4) To calculate the patient volume needed at the original reimbursement rate to cover variable costs (but not profit) with the new tech aide, you need to subtract the tech aid cost from the variable cost per mamo and use the same calculation as in question 1.
Variable cost per mamo (with new tech aide) = Variable cost per mamo - tech aid/per
= $15.00 - $3.10
= $11.90
Contribution margin (with new tech aide) = Reimbursement per screen - Variable cost per mamo (with new tech aide)
= $66.05 - $11.90
= $54.15
Monthly patient volume needed = Fixed costs / Contribution margin (with new tech aide)
= $2366.66 / $54.15
≈ 43.64
≈ 44 patients (rounded up)
Therefore, you would need approximately 44 patients per month at the original reimbursement rate to cover variable costs (but not profit) with the new tech aide.
I hope this helps! Let me know if you have any further questions.