Problem
How to Improve the Organization's Cost Structure
There are several ways to improve the cost structure of the health care organization:
• Enhance communication with physicians
• Standardize the organization's supplies
• Reduce utilization of services and supplies
• Obtain the best pricing for supplies and products
• Attain optimum productivity and staffing levels.
Task
A company that provides health services has to evaluate its cost structure to be more efficient.
• Which of these five ways is the most important to achieving effective financial results? Justify your answer.
• Differentiate between fixed costs and variable costs in the context of a health services company.
• Present an example that supports the answer to the question.