Chebaiywa Clinic Case

912 words 4 pages
Question 1: * Extraction and other services: 40% of all visits
Fillings and root canals: 60% of all visits

* Interest rate 2% * Total investments: 4.710.000, starts in 2009 (startup, water well) * Positive cashflow start in 2012 till 2021 * Average revenue per patient = 873,8

* Assumptions: * we did not take time of the different dental procedures into consideration. This is because I thought that the clinic would never get full, so there would never be a bottleneck situation where patients would have to wait that long that they would leave for the competitor. * Furthermore I assumed that more time was needed, that the extra costs was already calculated in the total costs of the particular treatment

* Answer
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Three scenarios

* Becoming self-sustaining-entity Best Scenario
Better infrastructure allows Tarus to realize the businesses. Assuming the businesses become successful, it will provide stable income for the clinic and higher income for the local people. Taurus can preserve the clinic’s long-term goal to serve the community, implement free-service care and focus on the clinic.

* Stay ELI’s clinic
The clinic keeps the fee-for-service policy. With the given trend in the previous scenario, people will be able to afford to pay for services. However, this might not satisfies the anger of the people because of being charged for services and might not keep staffs from giving free-service care, which causes a deficit.

* Failure businesses Worst Scenario
If for any reason none of the business were profitable, then people cannot afford the services. Similarly, Taurus failed to generate stable income for the self-sustaining clinic. Thus, the clinic cannot function well.

There is a trend of a rising amount of people that are in need of healthcare, for example the rising HIV percentage.
There is an uncertainty whether it is feasible to transform to a healthcare center. This can be defined as an effect uncertainty; it is not clear how the change will affect the organization with regards to level of quality, staff and equipment as well as he facility itself.

Two scenarios

* Transform Best scenario
To be able to generate funds

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