Major competitor cardiac catheterization lab

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Reference no: EM131935048

Your Hospital’s Open Heart Program has seen a decline in volume due to the number of patients having stents inserted at your major competitor’s cardiac catheterization lab. The CEO is quite worried that the volume might fall below break-even. Your data gathering reveals the following: Annual Fixed Costs are $18,000,000; Average Variable Cost per case is $38,000 and Average Charge (Price) per case is $53,540. Over the past 6 months the Open Heart Program has been averaging 24 cases per week. Last year the program reported an annual volume of 1821 cases. What is your response to the CEO’s concern?

Reference no: EM131935048

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