Southern Discomfort Case Study

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3. Given her mandate to reduce cost overruns, how much should Dr. Flaysakier request in her budget for the upcoming year? What narrative should she send to the Undersecretary to accompany her budget request?
Budgeted visits and medical supply costs for upcoming year:
Type of Visit Visits Medical supplies ($) Total ($)
Immunization 13000 0.60 7800
Nutrition counselling 5000 0.12 600
Prenatal care-NP 6500 - -
Prenatal care-MD 650 - -
Major visit 4500 1.30 5850
Minor visit 8000 0.25 2000
Total 37650 16250

Budgeted salaries for physicians and nurse practitioners for the upcoming year: Visits Time in Minutes
(minutes) Total time in minutes
(minutes) Salaries per minute ($) Total ($)
Physician:
Prenatal care - MD 650 15 9750 0.045 438.75 …show more content…
For the total salaries budgeted is $18663.75 while for the supplies and miscellaneous is …show more content…
It is because their quantity of work do not increase or decrease but just maintain the same. While for physician, the salary will remain $6500 instead of $7140 as there is no reason to increase the salary. Since the budgeted number of visits decrease to only 37650 visits compared to 37800 visits, the time worked of physician is actually decreased, therefore the salary should not be raised. The estimated time of work for both physician and nurse practitioners should just maintain as the time required in estimation. Inefficient of physician occurred at the activity of prenatal care – MD as the visits reduce from 800 to 650 but the time required did not have any changes and just remained the same. Salaries per minute is calculated by taking $6500 divide by the total minutes the physician worked and $0.045 is obtained. By setting the budgeted salary of physician at $6500, the cost can be reduced by 8.96% compared to this year’s budget. Then it can help to solve the problem of cost overruns at Clinique Nosral. While for nurse practitioners, the salary will also stick to $9000 same as last year’s actual salary. Although they claimed that they are overworked, inefficient in works where a declining in productivity is showed especially in prenatal care – NP. The activity reduced from 8000 to 6500 but the time for the visits increase from 15 minutes to 20
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