How many employees by type will the clinic need if it signs the contract for pre-employment physicals?

8-1 Two types of visits are provided by the Durham Health Clinic, first-time visits and return visits. Table 8-5 provides the processing time for each work station and the available staff hours per week. Determine the production frontiers for this clinic and indicate which station should be expanded to increase the overall capacity of the clinic. Which service station could be reduced?

Table 8-5Processing Time and Staff Hours Data for Durham Health Clinic (Exercise 14-1)
Work station Time estimates (hours)
First Visit Return Visit
Reception/discharge 0.25 0.12
Nursing and testing 0.40 0.38
Medical exam and treatment 0.50 0.25
155156

8-2 Durham Health Clinic has a contribution margin of $35 per visit. Calculate the break-even point in visits with fixed costs at $4000, $6500, and $8500 per week. Given this analysis, as a manager, what would you recommend and why?
8-3 Durham Health Clinic is considering signing a contract to perform 50 pre-employment physicals per week for a specific corporation. In terms of staff time, a pre-employment physical requires 0.20 hours in Reception/Discharge, 0.45 hours in Nursing and Testing, and 0.20 hours in Medical Examination. By work-station, determine how many work hours per week will be needed to perform these physicals.
8-4 Currently the clinic does 250 visits per week, with 50% of all visits as return visits. Each employee (physician, nurse, and receptionist) is scheduled to work 35 hours per week.
a. How many employees by type does the clinic currently need?
b. How many employees by type will the clinic need if it signs the contract for pre-employment physicals?

c. If return visits shift to 10% of all regular visits, how many employees by type will the clinic need with and without the contract for pre-employment physicals?

d. How will the answers to “b” and “c” change if the number of physicals is modified to 35 pre-employment physicals per week?

Throughout these analyses, specify all assumptions, including assumptions concerning worker productivity

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