The health facility can also perform much better or remain profitable if it adopts a lean technique. By selecting a lean concept, it will reduce unnecessary expenditure that majorly contributes to high cost. Additionally, through thin, it will be able to boost patient satisfaction by providing quality customer care. The hospital staff will have to work towards specific set quality standards (Torabi, Pour, and Shamsi, 2018). With excellent service, patients are more likely to return to the facility and even make some referrals from friends and family members. As a result, the facility will experience a high return on investment due to an increase in sales. The organization should also reduce the number of unnecessary tests that they do administer. The health facility will be more profitable if it takes the necessary steps in reducing the number of unnecessary tests that they do apply. Additionally, the facility should also reduce readmission rates. The readmission rate is very costly for a hospital.
Thought the clinic need to collect an average of $100 per patient visit to breakeven each month, it needs to attract or attend to more patients. Just like any other business organization, the clinic should engage in the marketing of its services within the locality and even beyond. With effective marketing, it will experience an increase in the number of patients visit. With an increase in the number of patients visit, the health facility will see a more significant profit margin. But this will require them to expand the patient panel size. They will also need to increase the number of health officials in case there is a need to cater to the increasing number of patients.
In conclusion, for the family clinic to continue being profitable, the management needs to take specific steps to ensure it does not struggle to reach its breakeven point each month. Some of the essential areas to consider are budgeting. They should adopt a flexible budget to enable them to make appropriate adjustments and to react to opportunities. Additionally, it should increase the price charged on its services. Furthermore, it should reduce variable costs that will increase contribution or gross profit margin from each unit of sales. The clinic should also engage in extensive marketing of its services to attract a vast number of patients.