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$5.00 Calculating the Break-Even Point

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yeoman24
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Q:

In 300-350 word, answer the following questions:

What is the role provided by break-even point and how would you calculate this point?  Please calculate break-even point in patient days under the provided contract.

(Contract)  You are attempting to develop a break-even for a capitation contract with a major HMO.  Your hospital has agreed to  provide all inpatient hospital services for 10,000 covered lives.  You will receive $38 per member per month to cover all inpatient services.  It is anticipated that 93 admissions per 1,000 covered lives will be provided with an average length of stay equeal to 5.0, or 465 days per 1,000.

What are the limitations of using break-even point and how would you incorporate this point with management strategic planning?

 

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$5.00
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  • Posted on Jul. 17, 2012 at 07:32:27AM
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nashutosh
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A:
Preview: ... alysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that product or service. Managers can use this information in making a wide range of business decisions, i ...
The full tutorial is about 195 words long .