Podcast
Questions and Answers
Which of the following is NOT considered a fixed cost for a healthcare organization?
Which of the following is NOT considered a fixed cost for a healthcare organization?
How does an increase in patient volume affect the proportion of fixed costs per patient?
How does an increase in patient volume affect the proportion of fixed costs per patient?
Which of the following is an example of a variable cost in a healthcare organization?
Which of the following is an example of a variable cost in a healthcare organization?
What is the effect of an increase in variable costs on the net income of a healthcare organization?
What is the effect of an increase in variable costs on the net income of a healthcare organization?
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Which of the following is a fixed cost that must be paid regardless of the number of patients served?
Which of the following is a fixed cost that must be paid regardless of the number of patients served?
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Study Notes
Fixed Costs
- Do not change with the volume of patients or services provided
- Examples: Rent, salaries of full-time staff, equipment and depreciation, insurance
- Characteristic: Remains the same whether one or multiple patients are served
- Example: Salary of a lab technician who must be present regardless of the number of patients
- Effect on net income: Increases as patient volume increases, leading to higher net income
Variable Costs
- Change with the volume of patients or services provided
- Examples: Supplies, part-time staff salaries, utilities, maintenance, and training
- Characteristic: Increases or decreases directly with the number of patients or services
- Example: Cost of syringes used in a lab for each patient
- Effect on net income: If not managed effectively, can reduce net income
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Description
Learn about the difference between fixed costs and variable costs in healthcare. Fixed costs, such as rent and salaries, do not change with the volume of patients, while variable costs, like supplies and utilities, do. Understanding these concepts can help in managing the financial aspects of a healthcare facility.
