Based on reed hospital – break even analysis, answer the following | finance


1. Although you are basically satisfied with the analysis presented in the case thus far, you are concerned about the uncertainties inherent in the revenue and expense data supplied by the Urgent Care Center’s director.  Assess each element in the pro forma profit and loss statement.

o Are any items more uncertain than the others?

o How could uncertainty be worked into the analysis?

o What additional information, if any, might you want to obtain from the Urgent Care Center’s director?

2. Does the Urgent Care Center have any value to the hospital beyond that considered by the numerical analysis just conducted?

3. Do the actions by Baptist Hospital have any bearing on the final decision regarding the Urgent Care Center?

4. What is your final recommendation concerning the future of the Urgent Care Center?

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