Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis
INTRODUCTION
In June of the current year Dr. Thomas Russell, Executive Director, and Susan Smyth, Accountant, at the Bridgestone Behavioral Health Center were discussing the necessity of gaining a better understanding of how to monitor the Center’s operating and financial performance. Located in Cleveland, Ohio, Bridgestone provides prevention, intervention, and treatment services for individuals with substance abuse problems. Bridgestone’s management is concerned about its financial performance after realizing a loss in the prior year although a small profit was projected. Despite management’s concern and attention of Bridgestone’s profitability troubles, the
During group counseling, clients have the opportunity to examine their thoughts through sharing, listening, and receiving feedback from their peers. In a group setting, clients also learn to develop social skills.
Individual Counseling – Individuals with addictions often consider their problems unique and, therefore, are best understood in a one-on-one session with their counselor. Individual counseling sessions focus on the patient’s progress in the educational process, group participation, drug monitoring, compliance, 12–step work, and identification of areas for improvement to achieve long-term sobriety.
Crisis Intervention – Due to the volatile nature of the disease of addiction, Bridgestone provides crisis intervention or emergency counseling for stressful situations that may lead to relapse or to help patients work through cravings or urges that could lead to a relapse.
Intensive Outpatient – Outpatient care focuses on education and counseling in both individual and group settings to achieve abstinence and to develop a self-responsible plan of addiction recovery for each patient. The program lasts six to eight weeks depending on individual progress and involves three three-hour sessions per week.
Medical Somatic – The service evaluates and monitors the needs of adults, children, and adolescents exhibiting symptoms associated with a Diagnostic and Statistical Manual of Mental Disorders, Fourth