Question

What are the financial implications of closing an urgent care that is projecting a financial loss?

Answer 1

Day to bill and account recievable ; There is increase in number of days to bill a claim and therfore increase in number of days in accounting recievable and can cause cash flow problems.

Reduction in frondesk collection rate ;It is the percentage of collection gathered by the front desk from patients before they leave the clinic. Sudden decrease in these collection rate affects the operation of urgent care, and there will loss on their operation causing financial problems.

Change in trends ; They will be financed and budgeted according to previous years trend and if their is sudden decrease in revenue source and increase in cost , they will fall into financial problem.

Increase in urgent care; If there is decrease in patients to the clinic due to addition of two other clinics in nearby area ,this can cause decrease in revenue from patients and leads to fianancial problems.

High cost of recources ; updated equipment, training and labour ;; Keeping upto date with current technology will incurr cost and training the staff to use the equipment, however if they are not keep up with technology they will loose patients.There is increase in labour cost due to shortage of nurses , doctors etc.