Tulsa Medical

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Submitted By jcharmon20
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MEMO

Evaluation of the Urgent and its financial feasibility has been conducted to determine if Tulsa Memorial Hospital should continue to maintain and operate this division of our business. The Urgent Care is currently seeing an average of 1230 visits per month creating $47,000 in net revenue. A breakeven analysis shows that the center should see 1460 visits per month at its current staff and cost (see appendix). In order for the center to break even, they would need to see an additional 230 patients per month or 8 patient per day.
I have approached our marketing department to identify what financial impact would have if we launched a program to drive business directly to the Urgent Care. Here are some of the numbers before we consider this approach: * $7000/month= for marketing program * $7000/30days=$233.33/day needed to run the program * $38.25= the approximate amount each patient is charged * $5.00=variable cost per patient * The urgent care would need to see an additional 7 patients/day simply to pay for the marketing program.
Although 7 patients per day does not sound like much, a majority of the loss would be from the additional staffing. The addition of 1 patient could cost $663. ($465 additional staffing+$233 marketing 1 day-$35 revenue from the patient.)
According to my calculations, in order for the marketing plan to be successful, the clinic would need to see an additional 30 patients per day. It would give the clinic a $275 profit per day after all cost incurred and allow us to escape the steep physicians semi-fixed cost.
This approach is the most feasible as long as this plan fits into the strategic plan of the health system. Further evaluation of how many unneeded visits to the ER are prevented. How the clinic can produce down stream revenue through such factors as general surgery or advance imaging referrals are not…...

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