Manor Memorial Hospital Question
... illness and minor emergencies) and a business segment (for exams) exists. What is the probable consumer decision process? Could be rather routine and very situational (time-of-day and day-of-week) for consumers. Could involve dual decision making (for third party situations). What is the DCH's current financial situation and what are the probable causes for this situation? A plot of the data given reveals that fixed cost are stable (r-square = .02837) for the last 10 months, contribution margins are stable, revenues are rising and losses are falling. Everything seems to be normal and as expected for the start-up period of a new venture. What are the prospects for DHC under the status quo? Not bad if the unit can continue its current trend. A plot of the # of visits shows a strong linear trend (r-square = .9119) for the last 10 months.This trend should bring traffic (# of visits) to breakeven within 10 more months. The concern is in terms of the clinic's ability to continue to service this flow given the noon-time congestion that results from the nature of the types of visits currently encountered. What is the current BEP for the DHC's operation? In monthly $ volume? In monthly visits? Using data for the last 10 months only, the BEP monthly volume = Average Fixed Costs/Average Contribution = $18835/.83577 = $22536. The BE # of visits = BE $ Volume/Average Charge per Visit = 22536/33.84 = 666. What is the current customer/service mix and how does it effect load factors? What are the impacts on profitability? 53% of traffic is for personal illness and exams. These occasions have the lowest average charge per visit, contribute to the congestion problem and offer the lowest likelihood of referrals. What is DCH's current marketing situation and future prospects? Low repeat performance, little evidence of any competitive advantage other than locational. What is the current operational perspective? Especially as it applies to capacity considerations? Worst case scenario is complete grid-lock durng peak period. It is proposed that an 8% increase in average service charges be instituted for next year along with a reduction in bad debt. What is the managerial philosophy reflected in these proposed changes? The apparent belief is that the problem is one of simply adjusting costs and revenue. There is no consideration for the customers. This is consistent with the approach used for a "management" firm. What are the expected results of these changes? Estimated pro-forma income for next year is a $69,861 loss. This is better than the first year's loss, but does nothing to impact the pro...