Question

When the clinic of Drs. Lewis and King agreed to accept individuals covered by a large managed care organization, the decision of the provider-owners was based on a computer financial analysis and projection of expected effects the new patient load would have on the practice. As a result, the practice added a second office manager and a new clinical medical assistant.

As the practice absorbs the new patients, what can the provider-owners do to determine whether their financial analyses and projections were correct?

Answer 1

As here the Business Model Used is simply transfer of Patients of Large Organisation to the certified Clinics specialised in same services.

With the new contracts over provision of services the clinic Owner will make further analysis on Actual basis over the projected analysis:

1. No. of Patient Increased as referred to Clinics

2. Increase ( INcremental) Revenue due to referrence of Patients to clinics

3. Cost Benefit Analysis: Incremental Revenue will able to cover the cost incurred over and above the incoming of Patient ( Appointment of Second Office Manager and NEw Clinicla Medical Assistant)

These should be evaluated over the Projected and Actually achieved.

Secondly same is behaving as projected or not. Other cost which has incurred in actual as not taken care off inprojection to be well evaluated.