Bayview Surgery Center: Break-Even Analysis

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That will also apply to Ex-ante analysis. The center will not be able to implement strategies and ideas for future movements in price or the future impact of a newly implemented policy. For example, if Bayview Surgery Center perform higher number of surgeries on the following year. The revenue generated from overcharging the insurance companies will also increase the profit. As a result, it will be hard to evaluate the implemented strategies since we won’t be able to interpret the revenue increase accurately. It’s also an ethical issue to use the Break-even analysis. First of all, it’s extremely complicated for Bayview Surgery Center to calculate and examine the margin of safety for based on the overstated revenues collected and associated

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