Tulsa Memorial Hospital (Break-Even Analysis, Case #6, pp. 47-53)
Download the Case 6 excel spreadsheet from here. This spreadsheet contains a model that will assist you in answering the following questions. You should replace the cells in red with the “appropriate” numbers, which may depend on your assumptions.
1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement for the clinic’s average month for all of 2014 assuming the status quo. Explain why you choose the numbers you did. With no change in volume (utilization), is the clinic projected to make a profit?
[HINT: Complete the “Pro Forma Average Month” section of the excel spreadsheet.]