Question: Breakeven Analysis, Textbook healthcare finance 6th edition L Gapenski & K Reiter (2016)
A not-for-profit acute care facility has the following cost structure for inpatient services: Fixed costs Variable cost per inpatient day Charge (revenue) per inpatient day $10,000,000 $200 $1,000 Assuming the hospital managers are expecting a patient load of 15,000 inpatient days next year answer the following:
a. Construct the hospital's base case projected P&L statement.
b. Calculate the hospital's breakeven point.
c. Calculate volume required to obtain a profit of $1,000,000.
d. Calculate volume required to obtain a profit of $500,000.