Profit Analysis In Healthcare

179 Words1 Pages
Setting prices for any organization can be a tedious process. Not only do you need to make sure that prices will create a profit, but you need to ensure that the amounts created will be reasonable. Profit analysis is a route that you could take to set prices for a particular service. Profit analysis is a more detailed and neutral way a health care manager can evaluate and even foresee the course of production for the health care facility or organization. Profit analysis is a method that can be used to understand costs, price assumptions, and volume because it allows a health care manager to answer practical questions (Gapenski, 2013). Estimating the profitability will create a financial road map to the future. Also, full cost pricing and marginal