The number of patients visited weekly will reduce causing some who solely depend on the services of the health agency to suffer.
A compromise in the services rendered to the customers may dent the image of the home health agency and lead to mistrust from patients. In such a case, there may be a mass exodus of patients from the organization derailing its operations. When the number of clients decline, the organization will receive less funding from the government. Allocation of fewer funds to the organization will paralyze operations, as there will be little finance to cater for salaries and allowance of the health professionals. The organization will experience shortage of personnel occasioned by inadequate funds arising from reduced government funding.
The home health agency will adopt strategies that to enable it recover the lost revenue used to take care of the old patient. Increasing patients’ number receiving care services through the health agency will help bridge the gap in cost of service delivery. Government funding is directly proportional to the number of patients under care of the health agency. The sure way of ensuring a rise for cash availed to the agency by the government is solely increase in patient number. Consequent increased government allocation avails more funds to the agency that is indispensable to service delivery and income generation. The health agency will be in a better position to take proper care of its patients and cater for allowances and salaries for the staff. Mobilization of more patients is through carrying out public relations.
In order to limit the cost of visiting patients, the personnel in charge will adopt application of public transport rather than private cars. Public transport systems are relatively cheap compared to the use of private means. In most circumstances, private cars have higher economic social class definition and would consequently demand more finances. In situations where the ...
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Breakeven production in units = Fixed cost/ contribution per unit
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