Chamberlain College of Nursing NR533 Financial Management of Healthcare
Organizations Week 5: Break-even Analysis
Assignment Guidelines with Scoring
Rubric
Purpose
The purpose of this assignment is to provide learners with the opportunity to develop break-
even-analysis skills.
Due Date: Sunday 11:59 p.m. MT at the end of Week 5
Total Points Possible:
100 REQUIREMENTS:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document, with the heading of Week 5 Assignment. For the
questions requiring a written response, please adhere to proper grammar and syntax, and
provide references. For the questions requiring calculations, show all your work and follow the
format that has been provided for the calculations in the lesson for Week 5.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient
fertility clinic in your service area. All of you are very familiar with this patient population base,
have completed an extensive market analysis that demonstrated a great need for the service,
and are comfortable with setting up a business and the costs associated with this special group of
patients.
As part of the business plan, you and your partners will need to convince stakeholders that this
new service endeavor will be viable. They will want to know how many patient visits will need to
occur annually and how long it will take for the service to be at least cost neutral or profitable.
To provide them with this information you will perform a break-even analysis. Use the following
data and conduct the analysis accounting for the contribution margin of each patient acuity
category.
• Fixed Costs: $9,788,000 (start-costs, specialty physicians, anesthesiologists,
APNs, staff nurses and other staff salaries, specialty equipment, other
miscellaneous)
• Variable costs: $500/patient visit (specialty equipment, oxygen supplies, other
miscellaneous)
• Clinic days: Monday–Saturday—312 days/year
• Projected patient visits per year: 7488
• Patient charges by patient acuity category:
o Simple (15%)---------$2,000/visit
ThNisRstu5d3y 3soBurcreeawkas-edovwennloAadnedalbyys1i0s0A00G08R47097152 from CourseHero.com 1
https://www.coursehero.com/file/34027592/71999d0a68010660162e0bdc11e78df9-NR533-Week-5-Break-Even-Analysis-Assignment-Guidelines-and-
, Chamberlain College of Nursing NR533 Financial Management of Healthcare
Organizations
o Moderate (60%)-----$6,500/visit
o Complex (25%)------$10,000/visit
1. Describe your approach to this Case Study. In addition to the numbers given, what do you
need to know before you can calculate the break-even analysis?
ThNisRstu5d3y 3soBurcreeawkas-edovwennloAadnedalbyys1i0s0A00G08R47097152 from CourseHero.com 2
https://www.coursehero.com/file/34027592/71999d0a68010660162e0bdc11e78df9-NR533-Week-5-Break-Even-Analysis-Assignment-Guidelines-and-
Organizations Week 5: Break-even Analysis
Assignment Guidelines with Scoring
Rubric
Purpose
The purpose of this assignment is to provide learners with the opportunity to develop break-
even-analysis skills.
Due Date: Sunday 11:59 p.m. MT at the end of Week 5
Total Points Possible:
100 REQUIREMENTS:
Answer the questions and complete the calculations required for the assignment.
Submit your answers on a Word document, with the heading of Week 5 Assignment. For the
questions requiring a written response, please adhere to proper grammar and syntax, and
provide references. For the questions requiring calculations, show all your work and follow the
format that has been provided for the calculations in the lesson for Week 5.
PREPARING THE PAPER
Break-Even Analysis Case Study
You and several of your colleague business partners have decided to establish an outpatient
fertility clinic in your service area. All of you are very familiar with this patient population base,
have completed an extensive market analysis that demonstrated a great need for the service,
and are comfortable with setting up a business and the costs associated with this special group of
patients.
As part of the business plan, you and your partners will need to convince stakeholders that this
new service endeavor will be viable. They will want to know how many patient visits will need to
occur annually and how long it will take for the service to be at least cost neutral or profitable.
To provide them with this information you will perform a break-even analysis. Use the following
data and conduct the analysis accounting for the contribution margin of each patient acuity
category.
• Fixed Costs: $9,788,000 (start-costs, specialty physicians, anesthesiologists,
APNs, staff nurses and other staff salaries, specialty equipment, other
miscellaneous)
• Variable costs: $500/patient visit (specialty equipment, oxygen supplies, other
miscellaneous)
• Clinic days: Monday–Saturday—312 days/year
• Projected patient visits per year: 7488
• Patient charges by patient acuity category:
o Simple (15%)---------$2,000/visit
ThNisRstu5d3y 3soBurcreeawkas-edovwennloAadnedalbyys1i0s0A00G08R47097152 from CourseHero.com 1
https://www.coursehero.com/file/34027592/71999d0a68010660162e0bdc11e78df9-NR533-Week-5-Break-Even-Analysis-Assignment-Guidelines-and-
, Chamberlain College of Nursing NR533 Financial Management of Healthcare
Organizations
o Moderate (60%)-----$6,500/visit
o Complex (25%)------$10,000/visit
1. Describe your approach to this Case Study. In addition to the numbers given, what do you
need to know before you can calculate the break-even analysis?
ThNisRstu5d3y 3soBurcreeawkas-edovwennloAadnedalbyys1i0s0A00G08R47097152 from CourseHero.com 2
https://www.coursehero.com/file/34027592/71999d0a68010660162e0bdc11e78df9-NR533-Week-5-Break-Even-Analysis-Assignment-Guidelines-and-
