In the present report an effort will be made for the purpose of analysing the various costs and the revenue that are going to be incurred and generated by way of operating a dental clinic.
Immense value will be created in respect of the Local Health District from this. The reason being that due to the unavailability of the dental services in the nearby area the inhabitants had to travel long distances for the purpose of getting the service in relation to this (Peterson et al., 2015). It is of utmost importance that the service is being introduced for the purpose of ensuring that the same is being received by them in the locality at a reasonable price.
Under the present scenario the inhabitants of the area are facing immense problem in respect of availing dental facility. The reason being that the hospital of the area doesn’t have a dental department. This has forced the inhabitants to travel long distances for the purpose of availing the dental care that they are in need of. The cost that is being incurred by them in the present scenario is immense (O’Neill & Ensle, 2015). Due to the fact that in addition to the consultation fees to be paid to the private practitioners, the inhabitants have to incur huge travel costs. For the purpose of mitigation of this issue it is of utmost importance that a new and improved dental clinic is being opened up in the area. The same would be engaged in the process of delivering decent dental care to the inhabitants at a reasonable price (Wright 2015).
For the purpose of mitigation of the issues that have been raised in respect of the present situation, a proposal is being made that the hospital must ensure that a new department is being opened up for the purpose of addressing the issue fo the dental care of the patients (Stiglitz, J. E., & Rosengard, 2015). To ensure that the same is becomes fully operational and creates value in the long run the hospital will have to ensure that the costs that are being incurred in its respect will be recovered from the revenue that is being generated by it.
The main aim of the proposal is ensuring specialisation of the care that is being given to the patients in respect of the dental problems. It is to be seen that a specific and new department is being opened up for the purpose of delivering quality care to the customer in this respect. The main purpose of is to maintain the cheap price that is offered by the hospital at present and ensure that specialisation is achieved. By adopting this approach the hospital will be able to break-even in a very short period of time (Aung et al., 2016). If the hospital opens up a new department that is directed towards the addressing of the issue only then the efficiency of the hospital’s services in this respect would increase. After the efficiency of the services that are being provided by the hospital improves the revenue that is being generated by the hospital from this source will increase rapidly. The same will be achieved by the entity after the services and the products are being offered to the patients at affordable prices without interfering with the quality.
The improvement in the quality of the services that are being offered to the patients will increase many times. This is one of the most significant improvements in the efficiency of the hospital. The human resource that will be arranged bit eh hospital in this respect will be able to deliver better quality of service if an entire department is being dedicated for the same purpose. The services provided by the doctors that are being hired for this job will be transferred to the right department (Verguet et al., 2015). The costs that are being incurred in respect of the department will be allocated to the right department. This will improve the cost allocation processes of hospital.
This in turn suggest that the overhead that is being incurred by the hospital in respect of providing quality service to the patients.
The hospital was previously losing its revenue due to the unavailability of Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities. Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time (Millward, 2017). Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities. Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time. the capital expenditure will include expenditure in relation to human resource equipment’s and other facilities like electric connection water connection waste disposal Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities (Chan, 2014). Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time the capital expenditure will include expenditure in relation to human resource equipment’s and other facilities like electric connection water connection waste disposal. The reason for the speedy recovery of the expenditure that has been incurred by the hospital is that it will be able to increase the number of patients who will be availing the facility of Dental Care provided by it. The increase cost of hospital will also include some revenue expenditure by way of disinfecting products disposable gloves syringes and miscellaneous (Andrews et al., 2017).
|
Factor |
Benefits |
|
Patients |
The most important benefits that will be received by the patients of the hospital is that they will be able to get specialised treatment in respect of dental care. As prior the patients were not able to consult an expert in the field of dental they were forced to remain unsatisfied with the care that was being received from the hospital even if their condition was very serious. The availability of an entire department solely dedicated to this purpose will enhance the satisfaction that is being received by the patient. |
|
Facility |
With the opening of a new department the hospital will have to ensure that the corresponding requirement of the equipment and the other elements like chair, electricity, expansion of the space that is present with the hospital etc. improves rapidly. This will ensure a face lift of the entire hospital by increasing the quality of the facility that is being offered by it to the patients. |
|
Clinicians |
The advantage that the clinicians will receive is the streamlining of the duties that are being assigned to them. With the opening of the new department the hospital will allocate specific tasks to the clinicians that will improve their knowledge base and skills too. |
Risks
|
Risk Issue |
Severity |
Impact |
Mitigation Plan |
Notes |
|
Financial risk |
The financial risk is high. The reason being that the hospital will have to incur huge costs in respect of the equipment to be purchased and the expansion of the space. |
This will increase the interest and the overall financial burden of the hospital in the future. |
The hospital must ensure that it takes loan after considering all the sources. In addition to that is must ensure that other sources should be sued up for the collection of the funds other than the loan like donations etc. |
The hospital must aim for less financial burden. |
|
Patients |
The risk associated with the patients is moderate. The risk associated with them is in respect of the number of patients that would turn up for the availing the dental services provided by the hospital. |
The revenue earned by the hospital has a direct relationship with the number of patients. |
Decent quality care and facility must be provided to the patients to ensure that the hospital is able to retain the patients. |
The increase in the number of patients of the hospital is necessary for ascertaining that the entity is able to successfully run the dental care services in the future. |
|
Insurances |
The risk is moderate. The risk is mainly concerned with the amount that is being incurred by the company in respect of the insurance of the new equipment that have been acquired and installed by the hospital. |
This will increase the burden on the hospital in respect of the amount that is being repayable by it. |
Cheaper, more effective and efficient insurance product has to be selected by the company for the purpose of ensuring that the degree of financial burden of the entity is being improved significantly. |
The cost that is associated with the insurance amount that is repayable by the hospital is very high. |
A team will be formed for the purpose of overlooking and monitoring of the various activities and the elements that are involved in the commissioning of the entre process. For the purpose of formation of the group the entire human resource that is available with the hospital will have to be reviewed and the qualification will have to be reviewed (Kaiser et al., 2016). The cost will be listed out that will be incurred in the process. Then the list of the sources of the financial funds of the company will have to be made. Some financial advisors will also have to be hired for ascertaining the success of the project.
The resources that are going to be required for the purpose of development of the new project will consist of the following:
Only doctors specialising in the field will be employed for delivering specialised care to the patients.
The department is going to have to appoint assistants who are well trained for the purpose of carrying out the requisite jobs and the chores involved in the process of dental.
The department will require clothing in respect of dental care the reason being that for the purpose of conducting surgery special clothing will be required by the surgeons of the company (NAGARIA, 2016).
Experienced cost professionals will be hired for the purpose of ascertaining the costs that are going to be incurred and conducting its monitoring. They will be assigned with the duty of reporting the management with the information regarding the costs that are being incurred and the revenue that is being generated and other details like the savings in the costs etc. to the management of the hospital (Nair et al., 2017).
In respect of the financial information a break even analysis of the entire proposal has bene made. This will ensure that the entity that the management of the entity is assured of the fact and details of the level of revenue that is to be generated by it for meeting up with the costs that have been incurred by it for implementing the proposal.
Within the breakeven analysis all the relevant items have been included like the costs incurred for the dentists, the surgical equipment and the requisite human resource.
References
Andrews, R. J., Khan, T. M., & Crisp, N. (2017). Physicians, poverty, and profits: can Robin Hood finance health care in developing countries?. World neurosurgery, 99, 786-789.
Aung, T. W., Jain, G., Sethuraman, K., Baumgartner, J., Reynolds, C., Grieshop, A. P., … & Brauer, M. (2016). Health and climate-relevant pollutant concentrations from a carbon-finance approved cookstove intervention in rural India. Environmental science & technology, 50(13), 7228-7238.
Chan, R. K. (2014). Policies and Politics: The Alternatives and Limitations of Health Finance Reform in Hong Kong. In Contemporary Social Issues in East Asian Societies: Examining the Spectrum of Public and Private Spheres (pp. 209-218). IGI Global.
Chi, Y. L., Krishnakumar, J., Maurer, J., Loncar, D., & Flahault, A. (2016). Who should finance WHO’s work on emergencies?. The Lancet, 387(10038), 2584-2585.
Choonara, S., Goudge, J., Nxumalo, N., & Eyles, J. (2017). Significance of informal (on-the-job) learning and leadership development in health systems: lessons from a district finance team in South Africa. BMJ global health, 2(1), e000138.
Kaiser, K., Bredenkamp, C., & Iglesias, R. (2016). Sin Tax Reform in the Philippines: Transforming Public Finance, Health, and Governance for More Inclusive Development. Directions in Development—Countries and Regions. Washington, DC: World Bank. Available at: https://openknowledge. worldbank. org/handle/10986/24617.
Millward, R. (2017). Urban government, finance and public health in Victorian Britain. In Urban Governance (pp. 47-68). Routledge.
NAGARIA, M. S. (2016). Finance: A vehicle for enhancing Performance in Indian Micro, Small and Medium Enterprises (MSMEs). Journal of Finance, 2395, 7492.
Nair, S., Jagannathan, A., Kudumallige, S., Kumar, C. N., & Thirthalli, J. (2017). Need for micro finance self-help groups among women family caregivers of persons with mental disability in rural India. Mental Health and Social Inclusion, (just-accepted), 00-00.
O’Neill, B., & Ensle, K. (2015). Personal Health and Finance Quiz&58; A Tool for Outreach, Research, and Evaluation. Journal of Human Sciences and Extension, 3(1), 149-149.
Peterson, L., Comfort, A., Omasanjuwa, E., Ambrose, K., & Hatt, L. (2015). Extending health insurance to informal sector workers in urban settings: findings from a micro insurance pilot in Lagos Nigeria.
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the Public Sector: Fourth International Student Edition. WW Norton & Company.
Verguet, S., Olson, Z.D., Babigumira, J.B., Desalegn, D., Johansson, K.A., Kruk, M.E., Levin, C.E., Nugent, R.A., Pecenka, C., Shrime, M.G. and Memirie, S.T., 2015. Health gains and financial risk protection afforded by public financing of selected interventions in Ethiopia: an extended cost-effectiveness analysis. The Lancet Global Health, 3(5), pp.e288-e296.
World Health Organization. (2015). Tracking universal health coverage: first global monitoring report. World Health Organization.
Wright, J. (2015). Essential package of health services country snapshot: Indonesia.
Xiao, J. J. (2016). Handbook of consumer finance research. Springer.
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