Health & Medical Question

Part 1Read the following scenario and complete a breakeven analysis. Assuming $500,000 of initial investment (capital and labor), an average payer reimbursement levelof $5,000 per procedure, and an average variable cost per procedure of $4,100, what is thebreakeven point in the number of procedures? If we performed 55 procedures per month, how longwould it take to make this procedure pay off financially?BE = FC ÷ CM

BE = breakeven point

FC = Fixed Costs

CM = Contribution Margin per unit (Price per unit–Variable Costs per unit)

Part 2:Determine a strategic initiative that your own organization is trying to achieve and addressthe following points: 1. Analyze whether the strategic initiative is still working, and if the organization is makingprogress towards its vision. 2. Describe how the organization is achieving the level of financial condition required tocontinue to invest in key clinical areas.

3. Explain whether or not expansion is needed based on evaluation.

4. Compare and contrast how the organization’s performance compares in key areas to others.

5. Explain in detail how this evaluation affects patient-centered care positively and/ornegatively.