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You are chair of the health planning council of a town that continues to have a health care cost crisis. The town has 30 physicians, each seeing 30 patients a day at a cost of $30 per visit. This means that the total daily cost of primary care in the community is 30 × 30 × 30 = $27,000.

What cost controlling methods are viable to reduce the total cost of physician services? Why?

Would it work to reduce the fee per visit from $30 to $20? Why or why not?

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Operation Management, Management Studies

Category:- Operation Management
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