Cannon Hospital Case Study

1403 Words 6 Pages
Register to read the introduction… In order to offer such a program, 25 new employees would need to be added in Year 1 including Dr. Christy. By Year 3, a total of 39 new employees would be required. Ten beds currently licensed as acute care beds that are not in use would need to be designated as coronary care beds. This program would also require three ICU beds in addition to the one additional operating suite. The total projected capital cost of this program is $3,273,180. The hospital is in a financial position that would allow them to make the necessary renovations without incurring any debt. Based on the projected revenue, costs and anticipated number of procedures each year, the projected profit and loss statement for each year is shown …show more content…
| | | | | | | | | Year 1 | | Year 2 | | Year 3 | | | 53 procedures | | 106 procedures | | 211 procedures | Potential revenue (400 procedures) | | | | | | | Open heart surgical procedures ($40,957/procedure) | 2,170,721 | | 4,341,442 | | 8,641,927 | | Room and board ($826/ day w/avg length of stay=9 days) | 394,002 | | 788,004 | | 1,568,574 | | Ancillaries ($3725/ day w/avg length of stay=9 days) | 1,776,825 | | 3,553,650 | | 7,073,775 | | Total potential revenue | 4,341,548 | | 8,683,096 | | 17,284,276 | | | | | | | | Direct Costs | | | | | | | Clinical Personnel | 711,793 | | 910,878 | | 1,695,457 | | Administrative Personnel | 136,565 | | 147,490 | | 159,289 | | Support Personnel | 52,764 | | 56,985 | | 61,544 | | Personnel Taxes/Benefits | 180,224 | | 223,071 | | 383,258 …show more content…
| Contracted Services | 110,000 | | 134,860 | | 298,185 | | Total Direct Costs | 2,364,214 | | 3,217,739 | | 5,438,392 | Indirect Costs | | | | | | | General and Administrative | 255,966 | | 302,376 | | 416,862 | | Other Overhead | 73,200 | | 88,630 | | 175,473 | | Depreciation, Building | 43,525 | | 43,525 | | 43,525 | | Other Property, Ownership and Use Expenses | 2,036 | | 2,402 | | 2,835 | | Consultant Services | 122,740 | | 153,399 | | 154,699 | | Rowan Community Outreach | 6,183 | | 6,739 | | 7,346 | | Total Indirect Costs | 503,650 | | 597,071 | | 800,740 | | | | | | | | Total Costs | 2,867,864 | | 3,814,810 | | 6,239,132 | | | | | | |

Related Documents