ClearEyes Cataracts Clinic Case Study – WM 80

Hasrul Abdurrahman-Raihan Alisha Nabila-Sharfina Ariefa-Zulfikar Nur Ristama

This case will explain whether we will expand the business through three options or do
just what we have done for the past three years. There are by giving the longer duration of
working hours and days, increasing the physical size of the clinic by closing the agreement
for another party who leased the expanded building and the last is expanding at a new site
within the greater Boston area. Before deciding our best decision, we initiate to identify
process-flow activities such as flow, time, quantity, quality, and cost.
To indicate the service time in a day of the total employees, consist of a receptionist, 4
PSRs, 3 Technicians, 2 Surgeons, and 1 cleaner, we calculate total working hours in a day for
staff and surgeons. The staff spends 8 hours (480 minutes) in one working day and a surgeon
spends 7 hours (420 minutes) in a day.
Occupations Minutes People interaction
in one day
Receptionist 4 120
PSR 40 48
Technician 36 40
Surgeons 20 42
Cleaner 9 53

From the table above, we can conclude that Idle time for receptionist is 1/3 of
technician interaction time with people. To decrease the idle time of receptionist, we will
assign her/his responsibility to be the additional PSR to help follow-up the potential patients
and decrease the percentage of no-show patients of both intake and surgery. From the case,
there are only 2 surgeons who are dr. Connors and dr. Zinicola with the availability of 3
surgery rooms. The role of the receptionist who turns to be the additional PSR is expected to
increase the number of potential patients who will finally undergo eye surgery.
The third surgery room which is mostly idle will be filled by recruiting one additional
surgeon so that one surgery room will be handled by one technician and one surgeon. This
decision will be made according to our calculation to target the PSR team to increase patients
up to 5283 procedures in one year. The calculation will be shown in the following table.
According to the data calculation in one year the increase will go up to $70,000 or a 2.8%
increase from $2,751,904 net profit. The additional number of surgeries will generate more
profit than if we rent the surgery room with the worth of only $51,000 and the estimation area
of 20 m².
 ClearEyes Cataracts Clinic Case Study – WM 80
Hasrul Abdurrahman-Raihan Alisha Nabila-Sharfina Ariefa-Zulfikar Nur Ristama

Graph 1. Process Flow

Table 1. Calculation of Expected Revenue

Procedures per year: 5,283 5,283 5,283

Additional procedure : 169 214
Procedures Forecast 5,452 5,497
Revenues: $1,338 net revenue per procedure $7,068,654 $7,294,776 $7,354,986

Costs
Direct Variable Cost per procedure $480 $2,535,840 $2,535,840 $2,535,840
Wages Surgeon @ $200,000 + $40/operation $384,440 $591,200 $593,400
1 Receptionist @ $38,000 $38,000 $38,000 $38,000
4 PSRs @ $38,000 $152,000 $152,000 $152,000
3 Technicians @ $48,000 $144,000 $144,000 $144,000
1 Cleaner @ $31,000 $31,000 $31,000 $31,000
Benefits at 28% of labor costs $209,843 $209,843 $209,843

Other Costs Advertising $48,000 $48,000 $48,000

Facility cost net of rent $36,000 $36,000 $36,000
Cleaning and maintenance $36,000 $36,000 $36,000
Other facility: insurance, IT, various $90,238 $90,238 $90,238
Legal $280,969 $280,969 $280,969
Miscellaneous $80,420 $80,420 $80,420
Accounting $90,000 $90,000 $90,000
Depreciation $160,000 $160,000 $160,000

Profit $2,751,904 $2,771,266 $2,829,276

% Increase 0.70% 2.81%

Rent Forecast Price/square $ 8.77

Room Estimated square Price
3rd Surgery Room 20m2 $ 175.44

Profit $2,751,904
Rent Fee $175
$2,752,079
% Increase 0.006%
 ClearEyes Cataracts Clinic Case Study – WM 80
Hasrul Abdurrahman-Raihan Alisha Nabila-Sharfina Ariefa-Zulfikar Nur Ristama