Bandon Medical Associates

Dr. Desautels has essentially two options in this case: He can 1) increase revenues or 2) reduce costs.

Make some suggestions on what actions Bandon Medical Associations should take, and then calculate those recommendations/suggestions utilizing the Budget 2 and Budget 3 worksheets within this file. When doing this case, you WILL need to create some additional calculations and create additional spreadsheets outside of the provided budget template in order to compare the original budget and the new budget after your suggestions have been implemented. For example, if you suggest a 10% increase in provider productivity make calculations in order to determine the affect of that 10% productivity increase. There would be a decrease in the number of minutes per visit for each type of visit. That would decrease the variable (and subsequently the total) expense per visit. OR for example, if you choose to increase revenue by doing additional marketing then you will need to estimate and include that cost of increased marketing and then increase the number of visits. Remember that healthcare providers are "price takers" meaning that they have minimal control over their reimbursement per visit, so it doesn't make much sense to raise price per visit.

1. Using the information contained in the case, prepare a budget for BMA for the four visit types shown. Use the approach suggested by Dr. Desautels at the end of the case, and organized your figures so the he will find them understandable and useful. (The worksheets that I have provided you will allow you to easily test your assumptions/ recommendations. The Original Budget should be with the information that Dr. Desautels uses, and you will create two additional budgets in order to test two different recommendations.)

a) Assuming Dr. Desautels is unhappy with the bottom line of this budget, what options are available to change it? b) Which options seem the most feasible to implement and why?

b) What problems do you think that Dr. Desautels will encounter in attempting to implement this budget? b) What should be done about those problems?

Attachment:- Bandon Medical Associates.xlsx