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Perpetual Care Hospital: Downtown Health clinic Free Essay, Term Paper and Book Report

Executive Summary: Downtown Health Clinic (DHC), an extension of Perpetual Care Hospital, is an ambulatory facility chartered with four primary objectives: - To expand the hospital’s referral base - To increase referrals of privately insured patients - To establish a liaison with the business community to addressing employer’s specific health needs - To become self-supporting three years after opening. The clinic was first opened in May 1999 and expected to be financially self-supporting by April 2001. The current financial summary indicates that: - fixed costs are fairly stable for the last eleven months - contribution margins are stable between 85% - 90% - revenues are rising and losses are falling. All these indices seem normal for a newly startup business. - It is being proposed that 8% increase in average service charges be instituted for next year along with a reduction of bad debt from 4 to 2%. This may help to reduce the time for DHC to breakeven. DHC currently services two market segments – (i) individual - for personal illness and minor emergencies, and (......

Word Count: 1117
Page Count: 4.4  (250 words a page / double spaced)

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