14Sep 2018

BREAK - EVEN ANALYSIS OF MRI UNIT IN A TERTIARY CARE ACADEMIC INSTITUTE.

  • Associate Professor, Hospital Administration, Government Medical College, Nizamabad, Telangana.
Crossref Cited-by Linking logo
  • Abstract
  • Keywords
  • References
  • Cite This Article as
  • Corresponding Author

Objective: To analyze the costs of MRI scanner in the teaching super- specialty Institute.To evaluate the Break-even analysis and to calculate the break-even point. Rationale: The financial managers of health care organizations are facing problems in managing high end diagnostic equipment in the cost containment. Accurate cost calculations and the profit estimation are mandatory for health managers. Method: The prospective study was conducted in a tertiary care academic Institute, we applied costing method empirically to assess the cost in performing a MRI scan and carried out the Break-Even analysis. Results: The total cost for operating the MRI equipment was Rs.19788186 (US$291184.26), an average of 23 scans were taken in a day. The revenue collection through MRI diagnosis was Rs. 31494441(US$ 463442.45) in the study year. 7967 scans were performed during the year. The revenue obtained through a scan MRI was Rs.3953.11 (US$58.19). The BEP of MRI facility was 7830.7. Conclusion: This methodology is beneficial to health care manager to identify the profit/loss MRI scanner. The results indicate that the MRI unit was working with profit. It was found that the total number of patients are gradually increasing for MRI scan, the MRI scanning unit already reached the break-even point.

  1. Accounting explanation.com blog. (2011). Break -even point? analysis [internet, cited on 2018 May 27]? Available from http://www.accountingexplanation.com/breakhttp://www.accountingexplanation.com/break_even_point_analysis.ht
  2. Aleem M, Khan MH, Hamad W. (2016).? A comparative study of the different costing techniques and the application in the pharmaceutical companies. Audit Financier. [Internet] 2016[cited on 2018 May 24]; 14(11)(143) :1253-1263 Available from? http://dx.doi.org /10.20869 /AUDIT/ 2016/143/1253
  3. Catanzaro TE. Break Evan Analysis. J Glob Econ.2016:4(2) Internet cited on 2018 May 20 Availble from http://www.omocsonlone.org/open-access/break-even-analysis-2375-4389-1000190.pdf
  4. Cao P. Toyabe S, Abe T. Akazawa K. (2006). Profit and loss analysis for an intensivecareunit(ICU) in Japan: a tool for strategic management. BMC Health Services Research [Internet]
[cited on 2018 May 20] ;6(1)? available from?? http://www.biomedcentral.com/1472-6963/6/1
  1. Chatterjee R.(2017). India Health Care [Internet blog updated 2017 July 7; cited 2018 May 21] Available from: https://www.export.gov/article?id=India-Healthcare-and-Medical-Equipment
  2. Choudhary P K, Patnaik SK, Singh MM, Kaushal G. (2013). Break ?even Analysis in Healthcare Setup .International Journal of Research Foundation of Hospital & Healthcare Administration [Internet cited on 2018 May 20];1(1):29-32 Available from
https://www.researchgate.net/publication/27467779_Break-Even_Analysis _in_Healthcare_Setup
  1. Conteh L. Walker D. (2004). Cost and unit calculation using step-down accounting. Health Policy and Planning [Internet cited on 2018 May 27] ; 19(2):127-135.
Available from https://www.researchgate.net/publication/ 8684630_ Cost_and_ unit_cost_calculations_using_step-down? _accounting
  1. Donai JJ. (2014). Practice Management: Look to financial statements before you leap. The Hearing Jounal [Internet cited on 2018 May 20] ;67(2).? Available from
https://journals.lww.com/thehearingjounal/Fulltext/2014/02000/Practice_Management_Look_to_Financial_Statements.8.aspx
  1. Khurshid R, Tabish S A, Hakim A, Khan A, Singh Y.(2014). Break ?Even Analysis of MRI facility at a large tertiary care teaching hospital of north India. International Journal of Medicine and Allied Health Sciences
[Internet cited on 2018 May 18];2(2)????????? Available from https://www.researchgate.net/publication/ 263968390_BreakEven_Analysis_of_MRI_Facility_at_a_Large_Tertiary_care_Teaching_Hospital_of_North_India
  1. Indian Infoline Blog. (2016). Growth of Medical Equipment Segment in India [Internet updated 2016 June 02; cited 2018 May 21] Available from: https://www.iifl.com/blogs/growth-medical-equipment-segment-india
  2. (2014): Break Even Analysis: What, Why, and How.? Shutterstock.com? astephen blog [internet] up dated 2014 Nov 9 ??[cited on 2018 May 27]? Available from? https://www.cleverism.com/break-even-analysis/
  3. Naikwadi, A. (2015). The new destination for health care equipment industry. Health World From Economic Time Blog. India., [Internet updated 2015 April 08; cited 2018 May 21] Available from: https://health.economictimes.indiatimes.com/news/medical-devices/india-the-new-destination-for-healthcare-equipment-industry/46847343
  4. Popesko, B., Novaik, P., (2014). Implementation of the process-oriented costing system in a hospital department. International Journal of Trade, Economics and Finance [Internet, cited on 2018 May 23] ;5(1).? Available?? from? https://pdfs.semanticscholar.org/d143/c5c01aa154664fb206c041133e53cfc0a726.pdf
  5. Roshan, (2017). BEP- Analysis? tool for sustenance: a study of a multi-specialty hospital. Acme International Journal of Multidisciplinary Research [Internet cited on 2018 May 24]; 5(7).?? Available from?? http://www.researchjournals.in/issues/aijmr/2017/A5710.pdf
  6. RehanaKhurdish, Tabish, S, A., Khan, A., Yudhavir Singh. (2014). Break ? even Analysis of MRI facility at a large tertiary care teaching hospital of North India. Int J Medicine and Allied Health Sciences. 2(2): 220-220
  7. Satyashankar, P., Kantipudi, S., Rinkoo, A,V., Unit costing and Break even analysis of MRI facilty at atertiary care Teaching hospital. Journal of Academy of Hospital Administration. 20(1), 29-35
  8. SaywellJr RM, Cordell WH, Nyhuis AW, Giles BK, Culler SD, Woods JR, Chu DKW, McKinzie JP, Rodman Jr GH. (1995). The use of a Break-even analysis: Financial analysis of a fast- track Acad. Emerg. Med. [Internet cited on 2018 May 20]; 2(3):739-745? Available from? http://onlinelibrary.wiley.com/doi/ads/10.111/j.1553.2712
  9. Sinha D. (2018). Budget 2018. Financial com blog [Internet updated 2018 January 19; cited on 2018 May 21] Available from: https://www.financialexpress.com/budget/budget-2018-affordable-health-care-for-all-here-is-how-pm-modi-can-fulfil-his-dream/997207/
  10. Troelsen T. (2006). Dynamic Costing ? Cost Types ,? TroelsRoelsen& Business Sumup [Internet cited on 2018 May 21] Available from http://www.jobsogningsguide.dk/upl/website/boeger-til- download/dynamiccosting 3.pdf
  11. Yildrim S, Yildrim C. (2015). Main economic evaluation of clinical outsourcing in MoH hospital in Turkey. Journal of Applied Business and Economics [Internet cited on 2018 May 20]; 17(3).
Available from http://onlinelibrary.wiley.com/doi/ads/ 10.1111/j. 1553.2712. 1995.tb03628.x

[C.Narender Kumar. (2018); BREAK - EVEN ANALYSIS OF MRI UNIT IN A TERTIARY CARE ACADEMIC INSTITUTE. Int. J. of Adv. Res. 6 (Sep). 177-183] (ISSN 2320-5407). www.journalijar.com

Dr.C.Narender Kumar.
Associate Professor, Hospital Administration, Government Medical College, Nizamabad, Telangana.

DOI:

Article DOI: 10.21474/IJAR01/7659      
DOI URL: http://dx.doi.org/10.21474/IJAR01/7659

Download Full Paper

Download PDF No. of Downloads: 251 | No. of Views: 675