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the midtown women s center offers bone densitometry scans in the office as a conveni 598139

The Midtown Women’s Center offers bone densitometry scans in the office as a convenience to its patients. The clinic volume is expanding, and Sam Loch, the center’s administrator, is considering dropping the bone densitometry service and converting the space to an exam room to allow for more outpatient visits. The following information has been gathered to help with the decision.

Number of scans per year


Reimbursement for bone densitometry scan


Bone densitometry supply cost per scan


Part-time bone densitometry scan technician


Reimbursement per office visit


Supply cost per office visit


Expected increase in outpatient volume if additional


exam space is available

a. What is the contribution margin for the bone densitometry service per year?

b. Should this service continue as opposed to converting it to exam room space? Why or why not?

c. How many office visits would it take to replace the income from the bone densitometry service?

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