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In an effort to reduce costs, a clinic changes the staff mix but keeps the number of staff unchanged. As a result, the staff cost per day is reduced from $2000 to $1750. The new staff takes longer, on average, to serve each patient, and the number of patients visits each day drops from 96 to 84. Measures show no change in the quality of patient care. Problem a. What is the unit cost per visit to start?
Problem b. What is the unit cost per visit after the change?
Problem c. How does the post-change productivity compare with the pre-change productivity, on a unit cost ($ per patient visit) basis?
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