Human resources (nurses, therapists, aids, etc) generally comprise the largest cost segment in a healthcare firm. What measures should directors and administrators monitor on their dashboard to help them make decisions about the cost of these resources? What steps can healthcare organizations take to maximize the efficient use of these resources?
An ambulatory surgery center has fixed costs of $250,000 per month and variable cost of $3500 per surgery. If average reimbursement per surgery is $6500, how many surgeries must be performed each month for the surgery center to break even? If a profit of $80,000 per month is desired, how many surgeries must be done to reach that goal?