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Break-even Point

The break-even point of a healthcare facility

Context :

You cannot avoid the conscious or unconscious use of the notion of break-even point.

In your financial analyses, in the choice of investments and in cost calculations, you will constantly use the measurement of a break-even point.

This notion is easy to use. You must be able to take advantage of it as much as possible, notably in the health services sector.

The knowledge of this adjustable concept in the management of a health care facility will be very useful to you in many circumstances.

Knowing this concept is a prerequisite for:

  • calculate the size of the facility,
  • identify level of activity needed for reaching the break even point.

Objectives :

To learn how to calculate the break-even point in a health care facility and to make a break-even analysis.

At the end of the training, the participant will know how to answer the following questions:

  • How to distinguish between the fixed and variable costs of a facility?
  • How to quickly calculate the break-even point of a facility?
  • How to act quickly on the break-even point of a facility?
  • What are the precautions to be taken when using the break-even point?

Program :

  • The notion of break-even point
  • The different types of costs
  • The calculation methods of break-even points
  • The conditions in which to use break-even points
  • The uses of break-even points and break-even analysis.