Assume a primary care clinic has the following in costs:
Wages and benefits = $280,000
Rent = $10,000 annually
Depreciation = $24,000
Utilities = $3,000
Medical supplies = $50,000
Administrative supplies = $8,000
Visits = 15,000
Assume all costs are fixed except medicalsupplies.
What is the clinic’s underlying cost structure?______________
What are the clinic’s total expected costs? _______________
What would the estimated costs be if visits were 5% overexpected? ___________
What if they were 8% under expected? ____________
What is the average cost per visit for:
15,000 visits = ______________
5% above = _______________
8% below = ___________________
What price do services need to be set at for the clinic to breakeven at 15,000 visits? _________________
