Premium Essay

Case Study Healthcare Finance

In: Other Topics

Submitted By jnosby
Words 1076
Pages 5
1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2014 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?

The below pro forma profit and loss statement states that the clinic is currently operating at a loss of $3,173 per month, considering that subtraction of fixed and variable costs. The contribution margin per month totals $48,138 or divided out equals to $35.67 per visit. The hospital is not sustaining itself at this point or even paying for its fixed costs.

2. Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a breakeven graph that can be included in your report.

Without the new marketing plan, the clinic will need an additional 19.8 - 20 patients each day to break even.

40.66(net revenue/visit)X =79,059
X= total number of visits that are needed to break even
X= 1944.39  1944  Average # of JanFeb 1,350 visits

3. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented.

With the new marketing plan, the breakeven point is at an additional 32 patients visits per day.

40.66(net revenue per visit)X =93,861
(92,511-1350,)/30days= 31.94patients per day  32 patients per day

4. Now focus solely on the expected profitability of the proposed marketing program. How many incremental daily visits must the program generate to make it worthwhile? (That is, how many incremental visits would it take to pay for the marketing program, irrespective of overall clinic profitability?) Construct a breakeven graph.

Additional 25 visits per day are needed in order to make it worthwhile for having the marketing program.…...

Similar Documents

Premium Essay

Finance Case Study

... FIN 6310 Case Studies Purchase Case Studies (4) • Harvard Case Studies (2) o Courses available at o • Ivey Case Studies (2) o Register for an account at Ivey Cases o Put the following two cases studies in your cart. Make sure Digital Download is selected which will cost $3.40 per case. o Burgundy Asset Management: The Wescast Investment Decision o Valuing Wal-mart 2010 o Download the Wal-mart case spreadsheet for free. o Valuing Wal-mart 2010 – Spreadsheet for students Case Report Guidelines 1. Place case title at top of first page with team member names (maximum four members per team). 2. Answer questions in numerical order. 3. Include graphs and tables if appropriate. 4. Print out case report and hand-in at the beginning of class. Harvard Management Company (2001) Questions 1. Is HMC’s recent payout policy consistent with the goal of preserving the real (adjusted for Harvard’s expense growth) value of the endowment and its distribution into perpetuity? 2. Could payout be raised to meet recent budget pressures without changing the risk-return profile of the portfolio? 3. What value has the HMC’s policy......

Words: 1092 - Pages: 5

Premium Essay

Case Study Santander Consumer Finance

...Malcolm Barraza FIN4606 23 April, 2013 Case Study Santander Consumer Finance 1. Please describe and evaluate the Country/Political Risk faced by this organization and describe its successes and failures. Having established itself as a strong financial leader within the financing sector of Spain, Santander has shown great strides in the overall growth towards becoming a worldly recognized leader concerning their involvement in finance on a global scale. The globalization process demonstrated by Santander is of grand success in comparison to many financial business endeavors throughout a multitude of various demographics, lifestyle and economic sectors. It is because of this extreme diversity within the business structure that Santander faces many obstacles in their decision making process. The level of difficulty in understanding each financial and economic sector relative to the various outreaches of each individual company demonstrates the need for strong initiative and research in assessing the components of each economy. Of these various concerns, once studied and researched, will provide answers to the questions presented within the case study. The decision of continuing to consolidate or expand and venture into new financial markets will be based on current performers within each market with respect to the competition branches within each individual segment. Understanding the influence of political powers within each business sector will allow the decision of flow...

Words: 2048 - Pages: 9

Premium Essay

Case Study of Islamic Finance

...GCC P. 28 GIF Magazine Special Report: Takaful in 2010 and Beyond P. 23 gif Interview Interview with Dr. Alberto Brugnoni: “Islamic Finance is not the exception, but the rule of normal financial behaviour” . Dr. Alberto Brugnoni is an international consultant in Islamic finance and ethics and is Founder and Director General of AASAIF, an organisation that participates in some of the most important international initiatives in Islamic finance. Dr. Brugnoni acted as Chair for the recent International Takaful Summit 2010 in London and moderated the session entitled “Enabling and Expanding the Scope of Takaful”. Here, Dr. Brugnoni speaks with Global Islamic Finance Magazine about why the Summit was such a big success, his work with Islamic microfinance, and the state of the Islamic finance industry in Europe. How did you find the International Takaful Summit? It was a great success for two reasons. 1) It was very well attended, with more than 450 delegates signing in. 2) We had institutional support. Nick Anstee, the Lord Mayor of London attended the opening session and spoke, as well as sitting in on several sessions. We also had dinner in the House of Lords at the invitation of Lord Mohamed Sheikh, which added credibility to the event. It was nice weather, nice atmosphere: It was 38 Global Islamic Finance September 2010 not just a formal event but also provided the opportunity for networking. To be honest with you, sometimes conferences can be hot......

Words: 1698 - Pages: 7

Premium Essay

Partners Healthcare Case Study

...Partners HealthCare System (PHS): Transforming Health Care Services Delivery through Information Management Case Description According to government sources, U.S. expenditures on health care in 2009 reached nearly $2.4 trillion dollars ($2.7 trillion by the end of 2010). Despite this vaunting national level of expenditure on medical treatment, death rates due to preventable errors in the delivery of health services rose to approximately 98,000 deaths in 2009. To address the dual challenges of cost control and quality improvement, some have argued that what is needed is an integrated electronic medical record (EMR) system and associated information technology-enabled processes. While the information systems currently available may meet the needs of the industry, the question remains as to what is required within and by the health care services organization to achieve a satisfactory response to these dual challenges. At the present time, Partners Healthcare System (PHS) maintains a centralized digital records library on over 5 million patients, augmented in real-time by data, textual comments, and artifacts (i.e. x-rays, MRI’s, EKG’s, etc.) as these patients visit doctor offices, receive hospital-based or home care services, and obtained prescription medications and other therapies. Procedures are in place to ensure the data quality and integrity of these patient files. Going forward, any health care professional across the network can access a patient’s complete...

Words: 2178 - Pages: 9

Free Essay

Mexican Healthcare Case Study

...Mexico has made great strides in trying to provide healthcare for its 115 plus million citizens. Healthcare in Mexico comes in three different and distinct varieties. There are the government-run institutions that provide limited health-care benefits administered by the Ministry of Health at very long wait times. There is the upper-echelon private sector, which represents a very small percentage of Mexicans and is comprised of individuals whose health-care funding is met through private insurance carriers at a price most Mexicans cannot afford. Then there are the emerging low cost private sector healthcare providers such as Primedic, whom provide access to select healthcare services via membership plans at a very reasonable price. While these three different systems tackle Mexico’s healthcare needs in various ways, Primedic and the emerging “entrepreneurial niche sector” is a perfect example of how entrepreneurs can play a significant role in improving and reshaping the healthcare system Mexico. Entrepreneurship simply by its nature tends to solve/create a solution to a need/concern that hasn’t already been met. With the current structure of Mexico’s healthcare system, many gaps in coverage and services provided exist. Primedic and other entrepreneurial oriented private healthcare companies have capitalized on these gaps and along with the growing demand of consumer-driven health care across Mexico. These companies provided needed services and provide opportunities for......

Words: 439 - Pages: 2

Premium Essay

Case Study for Finance

...Orhun Akbulut Case 1 PLRe88 Case Based Course in Finance 1,2) Stock Rate | Total Dividend,2003 ($) | 5-yr Dividend Growth (%) | Beta | Price ($) | Ke | Intrinsic Value ($) | 1 | 0.95 | 0.58 | 0.74 | 14.89 | 0.1002 | 10.122 | 2 | 0 | -100 | 2.3 | 29.02 | 0.2250 | 0 | 3 | 0 | 0 | 1.89 | 18.83 | 0.1922 | 0 | 4 | 1.25 | 8.50 | 1.31 | 93.48 | 0.1458 | 22.306 | 5 | 0.78 | 1.25 | 1.52 | 67.29 | 0.1626 | 5.270 | 6 | 0.06 | -9 | 1.04 | 3.28 | 0.1242 | 0.25 | 7 | 0 | -100 | 1.99 | 9 | 0.2002 | 0 | 8 | 0 | 0 | 0.89 | 55.91 | 0.1122 | 0 | 9 | 6.22 | 0.98 | 1.06 | 98.47 | 0.1258 | 54.14 | 10 | 1 | -0.48 | 1.76 | 43.07 | 0.1818 | 5.33 | 11 | 0 | -100 | 0.91 | 37.55 | 0.1138 | 0 | 12 | 0.25 | 2.10 | 1.8 | 38.30 | 0.1850 | 1.57 | 13 | 0.98 | -2 | 0.82 | 76.33 | 0.1066 | 7.6 | 14 | 2.25 | 4 | 1.12 | 67.09 | 0.1306 | 25.82 | 15 | 5.8 | -8 | 0.99 | 193.05 | 0.1202 | 26.65 | 16 | 1.02 | 13 | 1.01 | 38.33 | 0.1218 | -140.55 | 17 | 6 | 5 | 0.67 | 71.11 | 0.0946 | 141.26 | 18 | 0 | 0 | 1.11 | 9.23 | 0.1298 | 0 | 19 | 1 | 9 | 0.78 | 19.35 | 0.1034 | 81.34 | 20 | 0 | -100 | 1.2 | 29.92 | 0.1370 | 0 | 3) The differences between intrinsic values and the actual market prices are caused by characteristics and complexity of the markets. Because of the fact that some stocks did not pay any dividend at all and the value is related to the divident that has been paid in 2003, the intrinsic value formula will return zero and this endangers the formula’s......

Words: 688 - Pages: 3

Premium Essay

Corporate Finances Case Study

...Corporate Finances Case Study Negative Cash Flow This is the phenomenon most common with the business when they experience several expenditures that surpass the earnings of the business thus resulting into a deficit in meeting some of the business financial obligations. This situation is most common with the business in the first and second years (Ross, Westerfield & Jordan, 2011). When the situation arises, some businesses will resort to loans and equity financing as a way of mitigating the crisis of the business. With view of the Mason Corporation, a prognosis can be done to see into it that the business will be in a financial crisis given the financial trend observed. In this case, the business has to take some precautionary measures to cushion the business form such financial meltdown. In a business, it does not matter the amount of profit your company is making in a day, a month or quarterly, the most important thing to ensure is the continuity of the cash flow of the business. In this case a cash flow forecast is important and an integral part of any business successes. Without doing the forecast, one is destined to have problems in paying suppliers as well as meeting the basic business financial obligation and this will results into failure of the business to operate (Ross, Westerfield & Jordan, 2011). In this regard based on the information of the cash flow of the business, there are several options open for the business to evade the financial crisis. There......

Words: 867 - Pages: 4

Premium Essay

Case Study for Healthcare

...Quality Management Case Study Mike Baker OSCM440-F1WW-W14 John Rice March 1, 2014 Can improving health care quality result in a way that is beneficial to both the patients and the investors? This will create a way for lower costs to patients and higher returns to investors without sacrificing the quality care expected and deserved. VARIABLES Wellness programs Staying in the hospital longer Lack of communication between all the people involved Reduction in medical errors Healthcare improvements ALTERNATIVES Higher premiums for companies Shorter stays or no stays in hospitals Good communication between patients and doctors Improvements in healthcare may be optional Using technology to keep track of patient care When looking at the first alternative which is higher premiums for companies, it makes sense for companies to offer......

Words: 776 - Pages: 4

Premium Essay

Finance Case Study

...Case Three CHEF’S TOOLKIT INC. Cash Budgeting 企业现金需求分析和预算 1 Case Explanation: cash budgeting      History: Jefferys, invention of Pasta server Production: data Marketing: data Financial Implication: data Data: Composition of Canadian Households; Balance sheet(July 15, 1994) Jefferys Personal balance sheet (July 15, 1994) Production Schedule in Unit 2 Study Questions Q1:What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What is the problem?(5)Why is the problem?(6)Possible Solutions? Q2:Analyses (1) Background of Chef’s Toolkit Inc. ? (2) CV of managers? (3)What is the invention? (4)Company Size-up: production, marketing, and financial status? Q3:Budgeting(monthly sales : 10,000; 5,000; 30,000): production schedule, cash budget, Pro-forma income statement, Pro-forma balance sheet Q4:How can the firm avoid loss? Break –even calculation? Q5: How much money do the firm need for financing? Should Dale Raid invest? What are his risks? 3 Case Summary(案例) M r. P eter Jeffery President of Chef’s Toolkit Inc. M r. Dale Reid Private Investor 风险投资家 Obtain funds to start manufacturing and marketing a new pasta server. 4 Case Summary(案例) Produce Sell Chef’s Toolkit Inc. Pasta Server 意大利通心粉 Chef or Housewife 5 Objectives(目标)   Produce projected income statements, balance sheets, and cash flow statement up to July 31, 1995. 预计财务报告 Obtain fund from Dale Reid. 6 Why Budget? 预算 If you know where you are......

Words: 563 - Pages: 3

Free Essay

Finance Case Study

...Will Semsch 17/02/2015 Case Study #1 In offer number one you would receive $1,000,000 now, $200,000 from year 6-15, then 3,000,000 if the product did $100,000,000 in sales, which had a 70% probability. To calculate to present value of 3,000,000 in 15 years you first have to multiply it by the possibility, 0.7 giving you 2,100,000. I then used the equation. 2,100,000* 1/(1.1)^15 giving an answer of $502,723.30. After that I calculated the value of the ordinary annuity from year 6-15 by using the equation 200,000*1/(1.1)^6 with the exponent increasing by one for each year. The annuity came to a total of $763,058.55. Once I added up all three payments it comes to a total present value of $2,265,781.85. Year | Payment | Present Value | 1 | $360,000 | $327,272.73 | 2 | $504,000 | $416,528.93 | 3 | $705,600 | $530,217.72 | 4 | $987,600 | $674,544.09 | In offer two 30% of the Bayer pharmaceutical profits were offered per year for four years. Bayer’s gross profit margin was 60% and sales were expected to increase 40% each year, with the expected first year sales of $2,000,000. With all that said here was what the payments would look like over four years. I used 1 as the “N” which increased by one for each payment. The payment amount I used as future value and 10% interest. This offer results in a total cumulative present value of $1,948,563.47 For offer number three I found the present value to be $2,275,931.61. To find this I used 16 as the total number......

Words: 349 - Pages: 2

Premium Essay

Finance Case Study

...bru6171X_case02_023-038.qxd 11/24/12 2:24 PM Page 23 CASE 2 Bill Miller and Value Trust Bill Miller’s success is so far off the charts that you have to ask whether it is superhuman. Quite simply, fund managers are not supposed to be this good. Is it mortal genius, or is it celestial luck?1 By the middle of 2005, Value Trust, an $11.2-billion mutual fund2 managed by William H. (Bill) Miller III, had outperformed its benchmark index, the Standard & Poor’s 500 Index (S&P 500), for an astonishing 14 years in a row. This record marked the longest streak of success for any manager in the mutual-fund industry; the next longest period of sustained performance was only half as long. For many fund managers, simply beating the S&P 500 in any single year would have been an accomplishment, yet Miller had achieved consistently better results during both the bull markets of the late 1990s and the bear markets of the early 2000s. Over the previous 15 years, investors in Value Trust, one of a family of funds managed by the Baltimore, Maryland–based Legg Mason, Inc., could look back on the fund’s remarkable returns: an average annual total return of 14.6%, which surpassed the S&P 500 by 3.67% per year. An investment of $10,000 in Value Trust at its inception, in April 1982, would have grown to more than $330,000 by March 2005. Unlike the fund’s benchmark, which was a capitalization-weighted index composed of 500 widely held common stocks, Value Trust only......

Words: 10398 - Pages: 42

Premium Essay

Finance Case Study

...McDonald’s MCD: McDonald’s Corp (NYSE) Case Study Worksheet and Template Version 0.0: 1-9-2015 Presented by: Ashley Westbrook Worksheet Company information Name | McDonald’s Corporation | Address | 2111 McDonald’s Dr. | City, state, ZIP Code | Oak Brook, IL 60523 | Phone number | 1 (800) 244-6227 | Biography: McDonald’s has been serving the community since 1955, making billions in revenue and serving over 62 million customers daily. McDonald’s focuses on providing affordable fast dine-in food—burgers, shakes, and fries, The Mac Brothers, Dic and Mac McDonald, were approached by Ray Kroc to make the corporation what it is today. McDonald’s history includes operating in 119 countries since 2011, celebrating its 50th anniversary in 2005, and one of its signature meals, the Happy Meal, turns 25 years old. McDonald’s has a global structure, and it’s business structure includes CEO, President and branches off to Purchasing Department, Personal Development, Vice President Operations and Chief Financial Officer and starts to become catered to the main fast food chain with Managers. Even the international markets have individual Presidents. McDonald’s main products and services include their menu which involves selling hamburgers, shakes, fries, and other fast food items and international growth. With it having a global structure, McDonald’s is located almost everywhere. The fast food chain is located in United States, Canada, Australia,......

Words: 253 - Pages: 2

Premium Essay

Case Study in Finance Blaine Kitchenware

...which were touted as modern, clean, and easier to use than counterparts fueled by oil, coal, gas, or by hand. By 2006, the company’s products consisted of a wide range of small kitchen appliances used for food and beverage preparation and for cooking, including several branded lines of deep fryers, griddles, waffle irons, toasters, small ovens, blenders, mixers, pressure cookers, steamers, slow cookers, shredders and slicers, and coffee makers. ____________________________________________________________ ____________________________________________________ HBS Professor Timothy A. Luehrman and Illinois Institute of Technology Adjunct Finance Professor Joel L. Heilprin prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2009 Harvard Business School Publishing. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the......

Words: 3389 - Pages: 14

Premium Essay

Case Study: Partners Healthcare Systems

...Case Study: Partners HealthCare Systems Case Study: Partners HealthCare Systems Partners HealthCare is a non-profit, health system located in Boston that created a data based transformation (Davenport, 2013). It integrated a new system that aligned the participating organizations to cohesively run as one and to help shape the future of the organization. The system didn’t stop there as it was responsible for bettering the patient financing experience and the delivery of healthcare information to other organizations (Davenport, 2013). The initial goal of the organization was making patient care more affordable and accountable by providing integrated, evidence based, patient-oriented care. Problem Identified Partners HealthCare, which was created by major contributing hospitals and medical facilities in the Northeast, initially began as a way to focus on the patient needs; however, the company soon found themselves separating from their initial goal. There was more than one problem identified within the realms of the company. There are three main issues that this case study produced. The first outlying issue is called Alert/Warning Fatigue (Davenport, 2013). This derives from alerts that were placed in the system to warn doctors of notices that could be anything from mixing prescriptions to simple notifications that most doctors already knew or was not in their field of study. A second issue that requires resolution to create a successful working system is the......

Words: 1410 - Pages: 6

Premium Essay

Week 5 Case Study: Investment Potential in the Healthcare

...Week 5 Case Study HSM 544 Healthcare Industry The American health care industry is one of the nation's largest and most profitable industries (Healthcare, 2011). The American healthcare industry "has consistently increased its share of GDP from only 7.2% in 1970 to more than 16.0% in 2008" and that figure is still growing (Van Horn, 2010). It is also one of the few American industries that is expected to grow in the next few decades. In fact, the healthcare industry in America is expected to generate 3.2 million new jobs through the year 2018, which is more than any other American industry (Healthcare, 2011). This industry includes everything "from small-town private practices of physicians who employ only one medical assistant to busy inner-city hospitals that provide thousands of diverse jobs" (Healthcare, 2011). It includes things such as doctors' offices, phlebotomy laboratories, research laboratories, outpatient care centers, nursing homes, residential care facilities, clinics of all sizes, and large hospitals (Healthcare, 2011). It is not only a large industry, but a very broad one with many potential investment opportunities and many potential risks. Government and Healthcare The role of government in the healthcare industry is a topic that leads to very active and divisive debate. People are either of greater government involvement or deeply opposed to any government involvement. Currently, healthcare remains an industry with a high degree of regulation, in terms...

Words: 1159 - Pages: 5