Project Description: Present a plan to transform an existing health service or service line to achieve an overall 30% improvement towards one or all through of the goals of Triple AIM; this can inclu

Introduction

In the process of cost modeling, the goal is always to capture the drivers of costs and how the same is likely to affect the business in general. Every organization must be able to capture all these elements so as to understand the impact they have on the business and at the same time support the “what if” analysis of the business. The main purpose of this project is to come up with a medical office cost model for a small preventive health clinic. Below are the required resources for the facility as well as measures for supply and operation costs that are involved.

Required Resources

There are a number of resources that will be needed when it comes to managing a small preventative health clinic in any environment. The first one is the human resource which includes technical and non-technical experts who form the backbone of the facility however small it might be. Machine and Equipment are other resources that will be needed for the facility to be operational and this also comes with operational costs. The costs of service providers and suppliers must also be factored in the process of cost modeling for the facility. Lastly, there must be space where the clinic will have its offices and at the same time can be able to provide services to clients.

Measures for Supply & Operation Costs

The flow chart below provides a summary of the cost model for the said preventative health facility.

1. 2 RN @ $30/Hr for 10hrs/Day

2. 1 Receptionist @$15/Hr for 10hrs/Day

3. 1 Senior Consultant @$25/Hr for 5hrs/Day

4. 1 Office Messenger@12/Hr for 10hrs/Day

5. 1 Security Personnel@$12/Hr for 10hrs/Day

6. 1 Driver @$12/Hr for 10hrs/Day

Cost of Personnel

Cost of Operation

1. Daily Operations/Admin@$100 per day

2. Research and surveys@$900 per quarter

3. Testing and verifications@$50per person

4. Licensing Costs@ $5000 per year

5. Insurance @ $1600 per year

6. Travelling @$2000 per quarter

Cost

(Preventive Health Clinic)

Cost of Machines & Equipment

1. Machine Acquisition costs @ $10,000

2. Machine Installation costs @$1000

3. Maintenance& Repairs costs@$900/Year

4. Operation Certification costs @$500

Overhead Costs

Rent @ $2000/month

Utilities (Elect, Water, Phone) @ $1000/month

Office Supplies @$500 per month

Training @$600 per quarter