Monia Lee, administrative director of Digital Imaging Center, has been asked by

Question

Monia Lee, administrative director of Digital Imaging Center, has been asked by the practice members to see if it is feasible to add more staff to support the practice;s mammography service, which currently has two digital units and two technologists. She has compiled the following information: Reimbursement per mammography = $126.3 Equipment lease per month per machine = $10,450.00 Equipment maintenace per month per machine = $12,500.00 Technologist cost per mammography = $31.92 Technologist aide per mammograpgy = $18.20 Variable cost per mammography = $15 A. What is the patient volume needed per month to cover fixed and variable costs? B. What is the patient volume needed per month if the company desires to cover its fixed and variable costs and make a $5,000 profit on this equipment to cover other costs associated with the organization? C. If reimbursement decreases to $120 per screen, what is the patient volume needed per month to cover fixed and variable costs but not profit? D. If a new technologist aide is hired, what is the patient volume needed per month at the orginigal reimbursement rate to cover costs but not profit?

Explanation / Answer

a) Patient volume needed = (10450 + 12500) / (126.3 - 31.92 - 18.20 - 15) = 375.12 OR 376 patients

b) Patient volme needed to earn profit = (10450 + 12500 + 5000) / (126.3 - 31.92 - 18.20 - 15) = 456.84 or 485 patients

c) Patient needed = (10450 + 12500) / (120 - 31.92 - 18.20 - 15) = 418.18 OR 419 patients

d) Patient needed = (10450 + 12500) / (126.3 - 31.92 - 18.20 - 15 - 18.20) = 625.68 OR 626 patients

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