Chapter 31 – Break-Even Analysis Table 31.1, Income Statement FY 2023 Revenue $1,162,350 Expenses Staff salaries & benefits $300,000 Physician salaries & benef 540,000 Supplies 150,000 Equipment & facility expen 60,000 Other expenses 30,000 $1,080,000 Profit $82,350 Patient visits 18,000 Table 31.2, Projected Patient Visits Year Projected Patient Visits 1 16,000 2 16,500 3 17,000 4 17,500 5 18,000 Table 31.3, Reimbursement and Payer Mix Existing Projected Reimbursement Reimbursemen Payer Mix % Payer Mix % Medicare $52.50 50% 55% Managed Care $73.50 35% 30% Commercial $105.00 10% 5% Medicaid $42.00 5% 10% $68.25 100% 100% Table 31.4, Projected Practice Expenses Expenses Startup, Year 1 Year 2 Staff salaries & benefits $300,000 $300,000 Physician salaries & benef 480,000 480,000 Supplies 133,333 137,500 Equipment & facility expen 80,000 60,000 Other expenses 40,000 30,000 Total Expenses $1,033,333 $1,007,500
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- Patient visits increase to 16,500. - Use the average reimbursement rate from Table 31.3: $68.25. \[ \text{Revenue for Year 2} = 16,500 \times 68.25 = \$1,126,125 \] Show more…
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