VOLUME AND REVENUE PROJECT Research Paper Example | Topics and Well Written Essays - 250 words

VOLUME AND REVENUE PROJECT - Research Paper Example The costs are divided into fixed and variable costs. The marginal costs or the contribution is calculated by subtracting the variable costs from total revenues per unit. Medical spending with regards to private insurance spending is expected to grow in the year 2014 by an estimated 9.4% (National Health Expenditure Projections 2010-2020). Spending by the government is also expected to grow in Medicare and Medicaid by 6.2 and 300 percent respectively (National Health Expenditure Projections 2010-2020). Based on this estimated for the hospital to be profitable it either has to increase the volume of patients and or increase the revenue received per procedure. conservative figure for the projected revenue of $ 15,694,583, this is by using increments in number of procedures and cost per procedure to reflect the change estimates. The total expenses are estimated to be at $ 3,134,381 Looking at the expenses it could be noted that the physician contract services had a variance of -27.8% which affected the general result of the hospital. Other areas that should be focused on are the salaries and telephone costs. The hospital could consider employing more staff for its operations. National Health Expenditure Projections 2010-2020. 20 October 2013