Acc Hc Individual Assignment 2 Week 3 Break-Even AnalysisGetwell Clinics

ACC/HC561

After receiving the information from Beach Street office of Getwell Clinics, the DRG for three types of patients were reviewed to obtain the break-even analysis. Last year data that was submitted to me was received. The data included the patient volume proportions, average charges, average variable costs, and the amount of specific fixed costs assigned to each DRG. Before going into the actual calculations that was derived from the data, an explanation of the process would enable you to develop a big picture and help you understand the process.

Break-even analysis is a formula that allows a company to know when the total sales or revenues equal the total expenses. According to CITE, the breakeven...