Business of Radiology 101
Scenario: Falling Reimbursement and Hiring New Staff
You operate an imaging center. Below is a simplified representative income statement. This brief scenario illustrates some consequences of falling Reimbursements or the sequelae of hiring new staff. When you have reviewed your change and it's effects, click on EXPLAIN to have the changes highlighted. Click on headings to learn about terms used in your income statement.
- Change revenues to $1,825. What happens to net income? What happens to taxes?
- EXPLAIN
- Revert back to $2,000 revenue, or click the "Reset" button.
- Increase scanner useful life to 10 years.
- Change operating expenses delta (Δ) to 1.03. (Note: this causes expenses to rise yearly)
- What happens to EBDAT, Tax, and Net Income? What happens to taxes?
- How much do net revenues have to increase to offset the rising expenses (adjust Net Revenues Δ)?
- EXPLAIN