If the clinic’s contribution margin is $35 per visit, calculate the break even point in visits with fixed costs of $4,000, $6,500 and $8,500. What does this analysis tell you as manager of the clinic?

If the clinic’s contribution margin is $35 per visit, calculate the break even point in visits with fixed costs of $4,000, $6,500 and $8,500. What does this analysis tell you as manager of the clinic?

APPLIED QUANTITATIVE METHODS FOR HEALTH SERVICES MANAGERS

Table 8.5 Processing Time and Staff Hours Data for Durham Health Clinic

Time Estimates (hours)

Work Station First Visit Return Visit

Reception/discharge 0.25 0.12

Nursing and testing 0.40 0.38

Medical exam and treatment 0.50 0.25

Using the data provided inTable 8-5 in your textbook, determine the production frontiers for the Durham Health Clinic. Which station should be expanded to increase the overall capacity of the clinic, and why? If the clinic’s contribution margin is $35 per visit, calculate the breakeven point in visits with fixed costs of $4,000, $6,500 and $8,500. What does this analysis tell you as manager of the clinic?

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