Suppose the office implements a process change by using an RN to perform some of the surgeons
Question:
- Suppose the office implements a process change by using an RN to perform some of the surgeon’s work. Specifically, for a plagiocephaly exam, the surgeon’s time decreases from 18 to 10 minutes, while the RN’s time increases from 23 to 35 minutes. In addition, for a craniosynostosis exam, the surgeon’s time decreases from 40 to 22 minutes, while the RN’s time increases from 23 to 40 minutes. Assuming only the numbers of surgeons and RNs are adjusted in response to the process changes, how will this change the staffing levels and total cost for the outpatient office?
Resource | Surgeon | ASR | RN | CA |
Weeks per year | 52 | 52 | 52 | 52 |
Less: Vacation & Holidays | 6 | 4 | 4 | 4 |
Less: Training and Leave | 2 | 2 | 2 | 2 |
Available weeks per year | 44 | 46 | 46 | 46 |
Hours per day | 10 | 8 | 8 | 8 |
Less: Breaks, training, meetings | 1.2 | 1.5 | 1.5 | 1.5 |
Available hours | 8.8 | 6.5 | 6.5 | 6.5 |
Cllinical minutes available per day |
|
|
|
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Clinical minutes available per year |
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|
|
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Annual Cost per person | $ 696,960 | $ 89,700 | $ 134,550 | $ 71,760 |
Capacity cost rate ($ per minute) |
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|
|
|
Personnel process times (minutes) |
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|
|
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Plagiocephaly | 18 | 8 | 23 | 5 |
Neoplasm skin excision | 22 | 55.5 | 20 | 5 |
Craniosynostosis | 40 | 10.5 | 23 | 10 |
Plastic Surgery Dept. |
|
Charges | $ 12,449,500 |
Costs | 7,469,700 |
Reimbursement | 7,967,680 |
RCC: Ratio of costs-to-charges |
|
Total cost |
Charge | Average reimbur sement |
TDABC Profit |
RCC Cost |
RCC Profit |
$ - | $ 350 |
| $ - |
| $ - |
$ - | $ 350 |
| $ - |
| $ - |
$ - | $ 350 |
| $ - |
| $ - |