Reference no: EM132488185

Question 1: One of the physicians in the general pediatric department is a recent addition to the practice. He only has a few patients so far but the practice has been marketing his arrival in an effort to build up his patient panel. Use the following information to come up with a 'back of the envelope' estimate for how profits for the practice as a whole will change if the new physician is able to add patients to the practice. Note that the physician is already working at the practice. Only use the relevant information in answering your question.

1. Average monthly physician salary and benefits for the practice: $19,000
2. Expected increase in monthly patient visits: 30
3. Average reimbursement rate per patient appointment: $180
4. Average cost of supplies used during an appointment: $5
5. Expected increase in administrative department cost for additional appointments: $0
6. Last year's allocation rate for administration costs (per claim): $100

Question 2:  Assume that the general pediatrics department is running a monthly loss of $30,000 on average. Using the appropriate information, how many additional appointments does the new physician need to have to make up the $30,000 loss?