By what percentage would patient volume and capacity
utilization change if ClearEyes cut in half of the patients who
complete intake but fail to show up for surgery? If the clinic
could increase customer yield as described above, would it need to
add any staff or room capacity? If so, how much?
explain
- By What Percentage Would Patient Volume And Capacity Utilization Change If Cleareyes Cut In Half Of The Patients Who Com 1 (107.04 KiB) Viewed 48 times
ROY SHAPIRO PAUL MORRISON ClearEyes Cataracts Clinic In the fall of 2015, Dr. Julia Connors was thinking about whether to expand her business, ClearEyes Cataracts Clinic, and, if so, how. After some consideration, Connors decided to share some of her ideas with Nieves Morales, one of her best employees and one whose judgment she trusted. She received this response from Morales: "Dr. Connors, I do not believe that will work. Expanding the clinic that way, with extra hours and more days for all of us, will just make a huge problem. I really think that all the good we have accomplished here will be in serious danger." With that, Morales turned and walked away. Connors stood near the reception desk of her clinic feeling surprised, puzzled, and worried. Connors had founded the Boston-area clinic in 2012 in the predominantly Latino neighborhood of East Boston and had been the CEO and sole proprietor ever since. Creating, owning, and running her own company had fulfilled a lifelong ambition. By the end of its first year of operations, the clinic was on sound financial footing, and it had become quite profitable since then. Initially, Connors had grown the business by building awareness about cataracts and interest in her clinic through advertising on local radio stations and in free local papers. She did not believe that most of her target audience used the Internet very often, and considered television advertising too expensive. Her own advertising strategy, plus word of mouth and referrals by local ophthalmologists, generated about as much demand as she could handle. Connors spent $48,000 on this advertising in 2014, down from $62,000 in 2012. She asked patients how they had heard about ClearEyes, but most of the respondents were either unsure or named multiple sources. In fact, some of these sources were media that Connors had never used, so she stopped trying to collect this information. Connors believed that there was an opportunity to grow her company, but did not know to how to do it. Should she expand the number of rooms of her clinic, and if so, by how many? Should she increase the clinic's hours? Should she try some combination of both? It seemed to her that apart from a larger facility or being open for more hours each week, there ought to be a way for her to turn more of the potential patients who called in into actual served patients, which a friend of hers described as