Analyzing The Costs And Benefits Of Opening A Dental Clinic: A Business Case

If you are providing a business case, please provide a short outline (single paragraph) including, but not limited to, the following:

• What is to be achieved?
• What is the value to the Local Health District in this proposal?
• Why does this service need to be introduced?
  
  

Business Case: Analyzing the Costs and Benefits of Opening a Dental Clinic

In the present report an effort will be made for the purpose of analysing the various costs and the revenue that are going to be incurred and generated by way of operating a dental clinic.

Immense value will be created in respect of the Local Health District from this. The reason being that due to the unavailability of the dental services in the nearby area the inhabitants had to travel long distances for the purpose of getting the service in relation to this (Peterson et al., 2015). It is of utmost importance that the service is being introduced for the purpose of ensuring that the same is being received by them in the locality at a reasonable price.

Under the present scenario the inhabitants of the area are facing immense problem in respect of availing dental facility. The reason being that the hospital of the area doesn’t have a dental department. This has forced the inhabitants to travel long distances for the purpose of availing the dental care that they are in need of. The cost that is being incurred by them in the present scenario is immense (O'Neill & Ensle, 2015). Due to the fact that in addition to the consultation fees to be paid to the private practitioners, the inhabitants have to incur huge travel costs. For the purpose of mitigation of this issue it is of utmost importance that a new and improved dental clinic is being opened up in the area. The same would be engaged in the process of delivering decent dental care to the inhabitants at a reasonable price (Wright 2015).

For the purpose of mitigation of the issues that have been raised in respect of the present situation, a proposal is being made that the hospital must ensure that a new department is being opened up for the purpose of addressing the issue fo the dental care of the patients (Stiglitz, J. E., & Rosengard, 2015). To ensure that the same is becomes fully operational and creates value in the long run the hospital will have to ensure that the costs that are being incurred in its respect will be recovered from the revenue that is being generated by it.

The main aim of the proposal is ensuring specialisation of the care that is being given to the patients in respect of the dental problems. It is to be seen that a specific and new department is being opened up for the purpose of delivering quality care to the customer in this respect. The main purpose of is to maintain the cheap price that is offered by the hospital at present and ensure that specialisation is achieved. By adopting this approach the hospital will be able to break-even in a very short period of time (Aung et al., 2016). If the hospital opens up a new department that is directed towards the addressing of the issue only then the efficiency of the hospital’s services in this respect would increase. After the efficiency of the services that are being provided by the hospital improves the revenue that is being generated by the hospital from this source will increase rapidly. The same will be achieved by the entity after the services and the products are being offered to the patients at affordable prices without interfering with the quality. 

• Efficiency gains:

Factors and Benefits of the Proposed Dental Clinic: Patients, Facility, Clinicians

The improvement in the quality of the services that are being offered to the patients will increase many times. This is one of the most significant improvements in the efficiency of the hospital. The human resource that will be arranged bit eh hospital in this respect will be able to deliver better quality of service if an entire department is being dedicated for the same purpose. The services provided by the doctors that are being hired for this job will be transferred to the right department (Verguet et al., 2015). The costs that are being incurred in respect of the department will be allocated to the right department. This will improve the cost allocation processes of hospital.

This in turn suggest that the overhead that is being incurred by the hospital in respect of providing quality service to the patients.

• Potential savings/increased costs:

The hospital was previously losing its revenue due to the unavailability of Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities. Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time (Millward, 2017). Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities. Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time. the capital expenditure will include expenditure in relation to human resource equipment’s and other facilities like electric connection water connection waste disposal Location of the requisite facility in respect of providing Quality Services to the patients related to dental facilities (Chan, 2014). Hence huge portion of hospitals revenue was getting lost this loss is referred to as opportunity cost though the hospital will have to incur heavy capital expenditure at the beginning stage but the corresponding revenue that is being generated from utilising them will help pay recovery of their cost in a very short span of time the capital expenditure will include expenditure in relation to human resource equipment’s and other facilities like electric connection water connection waste disposal. The reason for the speedy recovery of the expenditure that has been incurred by the hospital is that it will be able to increase the number of patients who will be availing the facility of Dental Care provided by it.  The increase cost of hospital will also include some revenue expenditure by way of disinfecting products disposable gloves syringes and miscellaneous (Andrews et al., 2017). 

• What are the expected benefits of this proposal?

Risks and Resources Required for Establishing the New Dental Clinic

Risks 

• Action (insert as a flow chart  as attachment 1)

 A team will be formed for the purpose of overlooking and monitoring of the various activities and the elements that are involved in the commissioning of the entre process. For the purpose of formation of the group the entire human resource that is available with the hospital will have to be reviewed and the qualification will have to be reviewed (Kaiser et al., 2016). The cost will be listed out that will be incurred in the process. Then the list of the sources of the financial funds of the company will have to be made. Some financial advisors will also have to be hired for ascertaining the success of the project.  

The resources that are going to be required for the purpose of development of the new project will consist of the following:

1. a) Dentist:

Only doctors specialising in the field will be employed for delivering specialised care to the patients.

1. b) Dental assistant:

The department is going to have to appoint assistants who are well trained for the purpose of carrying out the requisite jobs and the chores involved in the process of dental.

1. c) Surgical clothing:

The department will require clothing in respect of dental care the reason being that for the purpose of conducting surgery special clothing will be required by the surgeons of the company (NAGARIA, 2016).

Experienced cost professionals will be hired for the purpose of ascertaining the costs that are going to be incurred and conducting its monitoring. They will be assigned with the duty of reporting the management with the information regarding the costs that are being incurred and the revenue that is being generated and other details like the savings in the costs etc. to the management of the hospital (Nair et al., 2017).

In respect of the financial information a break even analysis of the entire proposal has bene made. This will ensure that the entity that the management of the entity is assured of the fact and details of the level of revenue that is to be generated by it for meeting up with the costs that have been incurred by it for implementing the proposal.

Within the breakeven analysis all the relevant items have been included like the costs incurred for the dentists, the surgical equipment and the requisite human resource.

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