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Profits haven’t increased for Evanston Hospital - Assuming a comparison…

- - - - What could be the possible combinations and their reasons?
        
        Rate remains the same but the number of customers decrease
        
        Choice of other hospitals that probably offer the same quality of services at a lower rate. Or possibility of the presence of a Substitute over the services offered by the Hospital? (Competition in service provision)
        
        Better services from other hospitals - Lower Appointment Cancellations, Lower consultation time
        
        Rate reduced but still there is no rise in the number of customers
        
        Customers could probably be unhappy with the quality of services provided, despite the lower rate. There could also be competition from other hospitals
        
        Could lead to low CMS rating and preference of other hospitals (either private healthcare or public healthcare)
        
        Choice of Private healthcare increasing. So it must be an issue with the hospital.
        
        Service Provision an issue?
        
        6 more items...
        
        A possibility that the number of customers could have increased comparatively, but not enough to generate the required level of revenue to make a profit (due to lower rate)
        
        Rate Increase and Reduction in number of customers
        
        Probably due to the number of services offered by the hospital some of which could be unnecessary in the view of the insurance companies (or in case of the patient)
        
        Higher price for customers could lead them to prefer other hospitals - 5% decline in people choosing Evanston Hospital for past 5 years
        
        This could lead to Low CMS rating (avg 3/5) leading to further drop in choice of Evanston Hospital
- - - - Low Profits as Revenue is still greater than cost
        
        Possible reasons
        
        Equipment and other procurement costs
        
        What is the process involved in procuring the required equipment?
        
        Daily and Administrative Expenses
        
        Are the daily and administrative expenses on the rise? What are the reasons?
        
        Some wastage in provision of services
        
        Is the usage of equipment unnecessary in some places that is leading to wastage of resources and time?
        
        Manpower quality - Staff - Efficient Vs Inefficient
        
        Does the hospital hire more of highly efficient staff?
        
        Does the hospital provide any special training to the staff? What is the cost incurred on that?
        
        Drug-development related R&D costs
        
        Is R&D being performed continuously? How often? And what is the cost incurred on that?
        
        Payment of Salaries
        
        Are the highly-skilled staff being paid more than the rest of the staff?
        
        How often do the staff get a hike and how much is the % of hike?
        
        Inefficient Staff - could be replaced by highly efficient staff to improve ratings
        
        That too did not seem to help. Probably because of the rise in costs to maintain staff and equipment
        
        Problems to focus on:
        
        A solution to minimize cost to the Hospital and still be able to provide the best and high-quality service.
        
        Find the services that could affect the rating and recommend ways to improve them.
      - Loss - Cost is greater than revenue
    - - This should ideally increase profits. But that scenario depends upon the level of revenue earned
        
        Revenue Increases - Profit would increase - but this is not the scenario we are looking at as profits have dipped
        
        Revenue - decreases
        
        Profits are still there but are comparatively lower with respect to previous years. Revenue is still more than cost.
        
        There is a more likely case of loss as revenue is less than cost
        
        Revenue Remains the same - ideally profits should increase, going by the fact that cost reduces.