Wednesday, May 28, 2014

econ review question 19



Suppose you are the DCA of Ft. Lost in the Swamp’s community hospital. The Family Practice Clinic is interested in hiring an additional doctor. The cost per day of an additional doctor is about $800 in salary and benefits.

You have asked your RM to pull the supporting data for the clinic, including changes in productivity as a result of the last three hires.

The last three hires include a doctor, a nurse, and a medical clerk. The daily cost of a nurse is about $450, the daily cost of a clerk is about $200.

The clinic saw an increase of 5 patients per day as a result of hiring the last doc, 3 patients a day for the last nurse, and 2 patients a day for the last clerk.

What does this information suggest to you about the actual needs of the Family Practice clinic? If there is room in the budget to hire an additional worker, what kind of worker would likely increase productivity most efficiently?

What is the economic principle involved? (hint: ch. 5)

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