Abbington Health Center
Question no. 1
What would be the financial impact on Abbington Health Center of the different changes that the center's director Helen Fineberg is considering? Please show your calculations and state your assumptions on the exhibits.
Answer no. 1
Mr. Thomas being the assistant director of the Abbington health center proposed his plan for the health center. In the meeting, the director of the center and other departments’ heads were present. The plan proposed by Thomas was to evaluate the breakeven analysis of the health center and to propose that the number of patients’ visits should be increased in order to make appropriate profits for the center.
The plan proposed by Thomas was criticized by the department heads of the center and the director of the center was not so happy about the plan. The plans for the center were not made with the approval of the department heads and therefore, they criticized it for not including their opinion in the plan. The impact of this uncoordinated meeting ended with no results.
The director of the center made Thomas realize that his plan needs to be modified according to the suggestions proposed by the department heads of the different programs. The proposals were that Dr. Mosteller declined the increase of patients as he was of the view that the program was being run on its full capacity and more patients were unable to be accommodated.
Furthermore, Dr. Olivo accepted the increase of patients up to 4000 however;this required her to appoint another nurse practitioner on the cost of $62000 per year. Another member in the meeting, Dr. Harris,said that he would also be happy to increase the number of patients by 4000 however;he would also require an additional nurse practitioner at $65000 to accommodate the additional patients.
Thomas was asked to consider the above mentioned suggestions in his analysis and to add the necessary painting and renovation cost to his analysis. Thomas is now considering the effect of these changes to the financials of the health center.......................
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