Question

As an employee, write an internal memo to your manager addressing the following: Suggest several ways (other than raising prices) a medical practice can maximize the
contribution margin per unit of this limiting resource. identify the factor that you believe is most likelyto limit potential output capacity

Answer 1

INTERNAL MEMO

TO: Manager

From : Employee

Subject: Suggesting ways to increase contribution margin per unit

I am writing you to suggest several ways (other than rising prices) a medical practice can maximize contribution margin per unit.

here i am suggesting you best practices for increasing hospital profitability by reducing cost and increasing revenue and reimbursement.

1. Reduce unnecessary testing

2 Outsourcing the management of some services

3 Reduce supply costs by working with vendors and physicians

4 Review drug costs

5.Operation rooms are utilized by physician efficiently.

6. Patnering with local physician to reduce competition

7 Involve physician in cost reduction efforts

8. Staff should not be over or under

9. Assign responsibilities and task -  Develop a system of feedback to ensure that tasks are completed and to receive    data to evaluate the outcome of proper delegation across departments.

factors limiting the potential output capacity is shown below:

category	factors limiting output capacity
environmental factors	resources and facilities healthcare system
physician related factors	physician motivation and satisfaction physician competency
patient related factors	patient cooperation patient illness sycological factors