Question

I want a 10 page introduction and literature review on

“ACHIEVING ECONOMIES OF SCALE AND SCOPE THROUGH STRATEGIC REACTIVATION OF THE RADIOLOGY DEPARTMENT; -THE CASE OF MY HOSPITAL.

Background: My hospital has been without a functional radiology department for the past at least 5 years because they could not get a specialist doctor Radiologist to run the department.

All clients requiring such radiological services were outsourced to nearby facilities leading to loss of revenue.

Management, a few years ago, strategically decided to reactivate the Radiology department by employing a full time Radiologist to run the department.

Answer 1

Although I ain't an expert in research writing, I can give you a strong precedent on how to approach this problem so that you can continue on your own.

Firstly, let us examine the two keywords in the research title, that is, economies of scale and economies of scope.

Economies of scope:

You might already have an idea about this, but to put it in simple words, economies of scope means that the production of one good has a significant effect in reducing the production cost of a related good, maybe a complementary good.

Influence of strategic reactivation of the radiology department in economies of scope

Let's take up a scenario. Assuming that gradually, your hospital re-establishes the radiology department by appointing speacilists. So, how does this radiology department work. Basically, the radiologists are referred to by physicians in case of any special attention required for a particular patient. Yeah, you read it right.

One fine day, A patient feels pain in his joints and he approaches your hospital. Your hospital charges a consulting fee, let us say $100. The doctor diagnoses him of a possible fracture and refers the patient to a Radiologist who will probably make at least $200. In simple terms, your hospital loses out on $200 of revenue just because of not having a specialist, ultimately increases the business for the hospital. Thus economies of scope is increased.

Economies of scale and its influence of strategic reactivation of the radiology department in economies of scope:

Economies of scale are nothing but the cost advantages experienced by companies when production becomes efficient. This is directly proportional to the size of business. So yes, if we establish the radiology department, it is understandeable that how the business soares. Thus economies of scale is also increased.

From this explanation, you can build on your research article as per your needs. If you are satisfied with the answer please hit the thumbs up. Cheers!