In the ClearEyes Cataracts Clinic Case, we are told that Dr. Julia Connors has a busy,...
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In the ClearEyes Cataracts Clinic Case, we are told that Dr. Julia Connors has a busy, financially successful cataract clinic and that she wishes to expand to take advantage of unmet demand. She is considering four expansion alternatives: First, she could keep her physical facility as is and extend the hours. Second, she might expand space in the same building that she currently owns, with additional equipment and fixtures within her building. The third option is to expand at a new location. A fourth alternative, which is the focus of the case analysis, would increase volume by increasing the yield of potential patients, most of whom currently drop out before completing the process. An important problem in health care operations involves yield management in health clinics where patients often "drop out" and do not arrive for scheduled appointments (are "no-shows"). It is important to understand the dynamics of this decrease in patient yield if we are going to take action to improve the yield. Instruction Familiarity with the general content of the ClearEyes Cataracts Clinic Case will prepare you to complete this assignment. If you have not done so already, please read pages 1-5 of the case and become familiar with Exhibit 2 on page 10. The case is available HERE. You will concentrate your efforts on Exhibit 2 for this assignment. It is important that you realize on what the annual demand numbers (found in the third column) are based and what causes them to decrease over time (the decreasing patient yield). We will use these annual demand numbers to look at capacity utilization in future assignments and make decisions on how patient volume, capacity utilization, and financial outcomes change in response to proposed changes in the process. Please answer the following questions as specifically as you can. Question 1 Below is a matrix containing information taken directly from Exhibit2 of the ClearEyes Case. Note that not all the information from Exhibit 2 is included. We are specifically interested in examining the decreasing patient yield. We want to know why the clinic is losing patients the further they advance in the process. For this first question, please enter the numbers that complete the formula you would use to determine the yield loss (the number of patients lost) at each step in the process where the annual demand decreases To answer the first formula (A X B%-C), you will have to enter three numbers (A, B, and C) in the empty boxes following the formula. This formula will give you the number of patients lost to ClearEyes following the initial patient call in and screening. This number is referred to as the yield loss (the number of patients who have "dropped out of the surgical process). There are now fewer patients to whom ClearEyes staff will mail paperwork and call to remind to keep their Intake appointments. Another way of looking at this is that we now have fewer patients whom we can bill expected revenue will fall! I will walk you through filling in the answers to the first equation. We know that the yield loss is 3156 (14345-11189) patients. How is that number (3156) determined? Please use numbers in your formula and include the total yield loss at each step (rounded) Example: The expected formula for the first yield loss should look like this: #0000X ## 3.156. Please include the comma in thousands separator position. DO NOT include the % sign: enter only the number. Note that at the third yield loss formula, you will need to determine the yield loss separately for the i insured patients and cash patients, which add up to the third yield loss (JM). Adding the two together should equal the yield loss for this step. Please keep the tens decimal point for both Jand M. After you add them together, please round to a whole number, and you will get the correct yield loss for this step. Initial patient call 22% defect after this point Mall paperwork Call to remind TASK 28% no-show after this point Check in at clinic Intake Bun DETERMINING YIELD LOST THE FORMULA THAT DETERMINES HOW MANY POTENTIAL PATIENTS ARE LOST AFTER THE PRECEDING STEP PROVIDED BY INSTRUCTOR FORMULA AXBX C X %- Round formula answer to whole number Check: A-C-11.189 FORMULA: DXE%-F 34 pts X %. Round formula answer to whole number Check: D-F-8.056 ANNUAL DEMAND 14,345 11.189 11.189 8,056 8.056 Intake 74% insured, 26% cash 30% of insured no-show, 47% of cash Check in at clinic Surgery, cleanup, record (Staff surgeon 4,611: Connors 672 ops) First (next day) follow-up 21% no-show after first follow-up 3-week follow-up Round-formida answer to whole number Check: D-F-8,056 #Insured Lost INSURED LOST FORMULA: (G X HXQX 1%-J X %) X %- Round formula answer to tens decimal point #Cash Lost: CASH LOST FORMULA: (G X K%) XL% .M FROM CASE X %) X %- Round formula answer to tens decimal point Check: G-U+M)-5,283 Round (+M) to whole number FORMULA: NX 0%-P %- Round P to whole number Check N-P-4,174 8,056 5,283 5,283 5,283 4,174 D Question 2 What is the patient yield from initial inquiries through surgery? HINT: What percent of the patients who called with initial inquiries had operations? Please round your response to one decimal point. O 29.0% O-36.8% O 47.2% O 65.6% Question 3 O We are keeping busy O We could do better O We have work to do Thinking about the patient yield noted in the previous question, which of the following best reflects your thoughts about the extent of the yield loss from initial inquiries through surgery? O We are losing too many of our potential patients - 1 pts Question 4 1 pts Operations are the clinic core business O The clinic is experiencing an unacceptable yield loss O Increased revenue is based on increasing the number of potential patients continuing through to the operation stage O Next steps for this clinic will depend on decisions about increasing patient throughput 1 pts Which of the following true statement BEST states why it is important to understand what is driving the operation yield loss for the ClearEyes Clinic? Question 5 How many yield loss points occur prior to surgery? 0¹ 02 03 04 Question 6 Question 7 What is the patient yield loss following the Initial Patient Call? Note: How many of the initial callers are screened out by PSRS who take the call? 1 pts D Question 8 1 pts What is the patient yield loss prior to the patient checking in for his/her Intake appointment? Note: How many of the patients accepted by ClearEyes do not return for an intake appointment? Question ? 1 pts 1 pts What is the patient yield loss following Intake? Note: How many of the patients who completed their intake appointment do not return for their scheduled surgery? Question 9 By what percent would OR patient volume change if ClearEyes cut in half the number of patients who complete intake but fail to show up for surgery? HINT: OR patient volume would increase by 1/2 of the number of patients currently being lost after intake and before checking in for their operation. Determine that number. Divide that number by the number of patients who previously checked in at the clinic for their operation. Note: Keep one decimal point for the new number of patients having surgery. Question 10 1 pts Question 11 1 pts What is the patient yield loss for the ClearEyes Clinic from patient call in to surgery? HINT: How many patients are lost to the clinic between initial contact and surgery? 1 pts How many patients are lost after their first follow-up appointment? Note: How many patients who have had their operation fail to return for their second follow-up appointment to checkup on the progress of their healing and vision three weeks after surgery? It is important to note the following: (a) we can assume that these patients have no complaints (though it is possible that some are upset and so refuse to return), and (b) their not returning has no effect on revenue (as the charge for follow-up visits is included in the operation charge). D Question 12 At which point does the clinic lose the greatest percent of patients? O Following the inital call O Patients who do not show up for their Intake Appointment O Patients who do not return for their scheduled surgery O Patients who do not return for their second post-op visit Question 13 This question summarizes ClearEyes Cataracts Clinic's yield loss. The final 5,283 operations result from 14,345 initial inquiries, for a yield of What percent of the initial contacts are not getting their operations at ClearEyes? % 1 pts 1 pts Please round your numbers and enter a number with one decimal point. The percent sign is not needed. % In the ClearEyes Cataracts Clinic Case, we are told that Dr. Julia Connors has a busy, financially successful cataract clinic and that she wishes to expand to take advantage of unmet demand. She is considering four expansion alternatives: First, she could keep her physical facility as is and extend the hours. Second, she might expand space in the same building that she currently owns, with additional equipment and fixtures within her building. The third option is to expand at a new location. A fourth alternative, which is the focus of the case analysis, would increase volume by increasing the yield of potential patients, most of whom currently drop out before completing the process. An important problem in health care operations involves yield management in health clinics where patients often "drop out" and do not arrive for scheduled appointments (are "no-shows"). It is important to understand the dynamics of this decrease in patient yield if we are going to take action to improve the yield. Instruction Familiarity with the general content of the ClearEyes Cataracts Clinic Case will prepare you to complete this assignment. If you have not done so already, please read pages 1-5 of the case and become familiar with Exhibit 2 on page 10. The case is available HERE. You will concentrate your efforts on Exhibit 2 for this assignment. It is important that you realize on what the annual demand numbers (found in the third column) are based and what causes them to decrease over time (the decreasing patient yield). We will use these annual demand numbers to look at capacity utilization in future assignments and make decisions on how patient volume, capacity utilization, and financial outcomes change in response to proposed changes in the process. Please answer the following questions as specifically as you can. Question 1 Below is a matrix containing information taken directly from Exhibit2 of the ClearEyes Case. Note that not all the information from Exhibit 2 is included. We are specifically interested in examining the decreasing patient yield. We want to know why the clinic is losing patients the further they advance in the process. For this first question, please enter the numbers that complete the formula you would use to determine the yield loss (the number of patients lost) at each step in the process where the annual demand decreases To answer the first formula (A X B%-C), you will have to enter three numbers (A, B, and C) in the empty boxes following the formula. This formula will give you the number of patients lost to ClearEyes following the initial patient call in and screening. This number is referred to as the yield loss (the number of patients who have "dropped out of the surgical process). There are now fewer patients to whom ClearEyes staff will mail paperwork and call to remind to keep their Intake appointments. Another way of looking at this is that we now have fewer patients whom we can bill expected revenue will fall! I will walk you through filling in the answers to the first equation. We know that the yield loss is 3156 (14345-11189) patients. How is that number (3156) determined? Please use numbers in your formula and include the total yield loss at each step (rounded) Example: The expected formula for the first yield loss should look like this: #0000X ## 3.156. Please include the comma in thousands separator position. DO NOT include the % sign: enter only the number. Note that at the third yield loss formula, you will need to determine the yield loss separately for the i insured patients and cash patients, which add up to the third yield loss (JM). Adding the two together should equal the yield loss for this step. Please keep the tens decimal point for both Jand M. After you add them together, please round to a whole number, and you will get the correct yield loss for this step. Initial patient call 22% defect after this point Mall paperwork Call to remind TASK 28% no-show after this point Check in at clinic Intake Bun DETERMINING YIELD LOST THE FORMULA THAT DETERMINES HOW MANY POTENTIAL PATIENTS ARE LOST AFTER THE PRECEDING STEP PROVIDED BY INSTRUCTOR FORMULA AXBX C X %- Round formula answer to whole number Check: A-C-11.189 FORMULA: DXE%-F 34 pts X %. Round formula answer to whole number Check: D-F-8.056 ANNUAL DEMAND 14,345 11.189 11.189 8,056 8.056 Intake 74% insured, 26% cash 30% of insured no-show, 47% of cash Check in at clinic Surgery, cleanup, record (Staff surgeon 4,611: Connors 672 ops) First (next day) follow-up 21% no-show after first follow-up 3-week follow-up Round-formida answer to whole number Check: D-F-8,056 #Insured Lost INSURED LOST FORMULA: (G X HXQX 1%-J X %) X %- Round formula answer to tens decimal point #Cash Lost: CASH LOST FORMULA: (G X K%) XL% .M FROM CASE X %) X %- Round formula answer to tens decimal point Check: G-U+M)-5,283 Round (+M) to whole number FORMULA: NX 0%-P %- Round P to whole number Check N-P-4,174 8,056 5,283 5,283 5,283 4,174 D Question 2 What is the patient yield from initial inquiries through surgery? HINT: What percent of the patients who called with initial inquiries had operations? Please round your response to one decimal point. O 29.0% O-36.8% O 47.2% O 65.6% Question 3 O We are keeping busy O We could do better O We have work to do Thinking about the patient yield noted in the previous question, which of the following best reflects your thoughts about the extent of the yield loss from initial inquiries through surgery? O We are losing too many of our potential patients - 1 pts Question 4 1 pts Operations are the clinic core business O The clinic is experiencing an unacceptable yield loss O Increased revenue is based on increasing the number of potential patients continuing through to the operation stage O Next steps for this clinic will depend on decisions about increasing patient throughput 1 pts Which of the following true statement BEST states why it is important to understand what is driving the operation yield loss for the ClearEyes Clinic? Question 5 How many yield loss points occur prior to surgery? 0¹ 02 03 04 Question 6 Question 7 What is the patient yield loss following the Initial Patient Call? Note: How many of the initial callers are screened out by PSRS who take the call? 1 pts D Question 8 1 pts What is the patient yield loss prior to the patient checking in for his/her Intake appointment? Note: How many of the patients accepted by ClearEyes do not return for an intake appointment? Question ? 1 pts 1 pts What is the patient yield loss following Intake? Note: How many of the patients who completed their intake appointment do not return for their scheduled surgery? Question 9 By what percent would OR patient volume change if ClearEyes cut in half the number of patients who complete intake but fail to show up for surgery? HINT: OR patient volume would increase by 1/2 of the number of patients currently being lost after intake and before checking in for their operation. Determine that number. Divide that number by the number of patients who previously checked in at the clinic for their operation. Note: Keep one decimal point for the new number of patients having surgery. Question 10 1 pts Question 11 1 pts What is the patient yield loss for the ClearEyes Clinic from patient call in to surgery? HINT: How many patients are lost to the clinic between initial contact and surgery? 1 pts How many patients are lost after their first follow-up appointment? Note: How many patients who have had their operation fail to return for their second follow-up appointment to checkup on the progress of their healing and vision three weeks after surgery? It is important to note the following: (a) we can assume that these patients have no complaints (though it is possible that some are upset and so refuse to return), and (b) their not returning has no effect on revenue (as the charge for follow-up visits is included in the operation charge). D Question 12 At which point does the clinic lose the greatest percent of patients? O Following the inital call O Patients who do not show up for their Intake Appointment O Patients who do not return for their scheduled surgery O Patients who do not return for their second post-op visit Question 13 This question summarizes ClearEyes Cataracts Clinic's yield loss. The final 5,283 operations result from 14,345 initial inquiries, for a yield of What percent of the initial contacts are not getting their operations at ClearEyes? % 1 pts 1 pts Please round your numbers and enter a number with one decimal point. The percent sign is not needed. %
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Fundamentals of Corporate Finance
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