This website uses cookies to ensure you have the best experience.

Management Paper

1116 words - 5 pages

Case Study #2 Tulsa Memorial Hospital
CPT Hoffman and MAJ Ochoa

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic’s average month for all of 2014 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?

The below pro forma profit and loss statement states that the clinic is currently operating at a loss of \$3,173 per month, considering that subtraction of fixed and variable costs. The contribution margin per month totals \$48,138 or divided out equals to \$35.67 per visit. The hospital is not sustaining itself at this point or even paying for its fixed costs.

(see math below)
40.66(net revenue per visit)X =7,9059
X= total number of visits that are needed to break even
X= 1944.39/ avg # JanFeb 1,350 visits

3. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented.

With the new marketing plan, the breakeven point is at an additional 32 patients visits per day.
40.66(net revenue per visit)X =93,861
(92,511-1,350,)/30days= 31.94patients per day or rounded to 32

4. Now focus solely on the expected profitability of the proposed marketing plan. How many incremental daily visits must the program generate to make it worthwhile? (That is, how many incremental visits would it take to pay for the marketing program, irrespective of overall clinic profitability?) Construct a breakeven graph.

In order for the clinic to not operate at more of a loss than they were from before the marking program, the additional 25 visits per day are needed. The marketing costs of \$7000 are paid for through the incremental analysis.

5. Thus far, the analysis has considered the clinic’s near-term profitability, that is, an average month in 2014. Recast the pro forma (forecasted) profit and loss statement in Question 1 for an average month in 2019, five years hence, assuming that volume is constant over time. (Hint: You must consider likely changes in revenue and costs due to inflation and other factors. The idea is to see if the clinic can “inflate” its way to profitability even if volume remains flat.)

Using a set 3.0% inflation rate over the next 5 years, the clinic is still losing money. The building lease was kept at a set price since it was a long term lease and subscriptions were not changed.

6. Although you are basically satisfied with the analysis thus far, you are concerned about the uncertainties inherent in the revenue and expense data supplied by the clinic’s director. Assess each element in your Question 1 pro forma profit and loss statement. Are there any items that are more uncertain than others? How could uncertainty be worked into the analysis? Is there any additional information that you might want to get from the clinic’s director?

The more uncertain elements in the pro forma data in our opinion are:
1) Baptist’s acquisition of healthcare facilities may impact TMH’s market share. With overworked employees in the clinic, they may seek out Baptist...

Other Essays Like Management Paper

Project Management Paper

1162 words - 5 pages MGT/437 Project Management Paper In the vastly changing business world, many organizations have found that it is important to implement project management into the organizational strategy. Environmental conditions like a hike in salaries, lack of borrowing power, increasing prices for raw materials, stockholder pressure, and inflation are contributors to the environmental condition. Executives in the past have ease the impact

Management Strategy Paper

1114 words - 5 pages Running Head: Management Strat Management Strategy Paper Blue Beacon Truck Wash operates more than 100 truck wash locations across the United States and Canada. Each location is open 24 hours a day, 7 days a week. Blue Beacon has more than 30 years of experience, with easy access to major interstates and highways. Blue Beacon provides fast and friendly service. Blue Beacon Truck Wash will achieve 15- 20% annual growth through

Operations Management Final Paper

1579 words - 7 pages Operations Management Name Institution Operations Management There are various factors that affect the success or failure level of a business organization. The factors could either be internal or external for instance capital and other resources, market and customer base, location, expertise, political, social, economic, competitive and technological factors among others. The location of a business organization is particularly an

2146 words - 9 pages Management and Leadership Paper Leadership and management are two notions that are often used interchangeably. However, these words actually describe two different concepts. Below, I will discuss these differences and explain why both terms are thought to be similar. Leadership is a facet of management, is just one of the many assets a successful manager must possess and care must be taken in distinguishing between the two concepts. The main

Management Planning Paper

1089 words - 5 pages Management Planning Paper Halliburton is a business that was founded in 1919 that provides engineering and construction services to the energy industry, infrastructure companies, and to several governments across the world. The company consists of two divisions: Drilling and Evaluation and Completion and Production. Halliburton is close to being the world’s largest products and services providers to the energy industry. It does business

Technical Paper It Project Management

2602 words - 11 pages Technical Paper Project Information Technology Project Management (CIS517) Date: Introduction There is an old adage which insists “time is money.” While simple, in concept, it has been proven true, in fact. In a global, technologically driven society, however, the very idea of time has changed. Having once implied a spanning space between the hours of “nine to five” relative to the person or organization from whose vantage money

Non Employment Conflict Management Paper

4745 words - 19 pages its own internal challenges.ConclusionThe Wamayo River Basin is important to many businesses and interest groups. With the salmon population dwindling and hydropower becoming clean and renewable source of energy, the federal Wamayo Basin Management and Conservation Department must use ADR processes to reach its goal while maintaining equilibrium between the Northwest Timber and Paper Association and the Wamayo Farmers Association. Mediation is

Effects of Quality Management on Domestic and Global Competition Paper

1228 words - 5 pages Effects of Quality Management on Domestic and Global Competition Paper MGT/449 Wells Fargo versus Wachovia From the beginning in 1852, then titled Wells, Fargo & Co., the new banking and express delivery company became a well-known and trusted place to buy gold, bank, and sell paper drafts (which were as good as gold) (Wells Fargo, 1999). Since then, Wells Fargo has moved East through the United States, and has globalized. In 1929

Management Theories Paper

2003 words - 9 pages Paul Hawkin’s once said, “Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them” (Hawkins) This quote is so very true in the realm of education. In middle grades, students attend school just for the socialization. This can cause many disturbances during the school day. They are all going through a tough time just wanting to fit in somewhere. Some

Management Planning Paper

1142 words - 5 pages be certain of achieving their strategic goals. After the tactical phase, the company is ready for their operational planning phase. In the operational planning phase, the main concern of the company is factors such as pricing, labor cost, and the expenses needed for coming up with new technologies. This is another crucial stage for the management team because one mistake could already mean wasting the company's money. This is also the reason the

Strategic Management Paper

3294 words - 14 pages University of Jordan Faculty of Business Strategic Management “McDonald's” Case Study STRATEGIC MANAGEMENT Prepared By Fathi Salem Mohammed Abdullah 2009 Table of Contents Topics Introduction History analysis Vision, Mission, Value The Five Forces Framework PESTEL Framework External Audit CPM-Competitive Profile Matrix External Factor Evaluation (EFE) Matrix Financial Ratio Analysis Internal Audit Internal Factor Evaluation

Related Papers

Conflict Management Styles Paper

1164 words - 5 pages | | Conflict Management Styles Paper Mary Weyer Conflict Management Styles Paper Conflict happens in life. The way one responds to conflict will limit or enable their success. If one has the right tools to understand the conflict, they will understand their conflict patterns and will have the power to make more effective choices when they are confronted by conflict. One’s personal conflict management style will have an effect

Project Management Paper

1214 words - 5 pages I received full credit for this paper - 100 % Project Management Paper MGT/437 July 8, 2013 Jenny Kirgis, MBA Project Management Paper The purpose of this paper is to define the concepts that are involved in project management. Organizations across the globe utilize a particular kind of organized methodology to manage business projects. Project management is a means that brings significant benefits and discipline