NR630 Week 6 Break-even Analysis Assignment Latest 2018 December Question # 00597166 Course Code : NR630 Subject: Health Care Due on: 01/23/2019 Posted On: 01/23/2019 06:41 AM Tutorials: 1 Rating: 4.7/5

NR630 Nurse
Executive Practicum

Week 6
Break-even Analysis Assignment

Purpose

The purpose of this assignment is to:

To provide learners with the opportunity to develop
break-even-analysis skills.

Outcomes

CO 8: Delineate effective resource management and fiscal
responsibilities of the nurse executive. (PO 5)

Due Date: Sunday 11:59 PM MT at the end of Week 6

Students are given the opportunity to request an extension
on assignments for emergent situations. Supporting documentation must be
submitted to the assigned faculty. If the student’s request is not approved,
the assignment is graded and a late penalty is applied as follows:

Requirements:

Answer the questions and complete the calculations required
for the assignment.

Submit your answers on a Word document, with the heading of
Week 6 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 6.

Preparing the paper

Break-Even Analysis Case Study

You and several of your colleagues 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.

The outpatient fertility clinic will have a fixed cost of
$9,788,000 —start-up costs, hiring of specialty physicians, anesthesiologists,
advanced practice nurses and staff nurses, salaries, purchase of
high-technology fertility equipment, and other miscellaneous items.

The fertility clinic will be open Monday through Saturday;
312 days per year.

The fertility outpatient clinic has variable costs of $500
per patient visit —fertility medical equipment, oxygen supplies, and other
miscellaneous items.

Each patient will be charged the following per visit based
on patient acuity categories:

1. Simple 15% = $2,000

2. Moderate 60% = $6,500

3. Complex 25% = $10,000

The projected patient visits per year are anticipated to be
7,488 visits. How many patients would the clinic have to provide services for
to break even, and at what point would this occur?

What is your interpretation of the break-even analysis? Is
this project a viable and profitable service? Does the break-even analysis
support moving forward with this business? Why, or why not?