Case Analysis Clear Eyes
Case Analysis Clear Eyes
Case Analysis Clear Eyes
Submitted By:
Group2
FT1741
03 Vishesh Agrawal
FT1740 Rituraj Singh
72 Girnar
FT1720
16 Ankur Rao
FT1740
87 Smruti Dash
FT1710
17 Ankit Makan
PROBLEM STATEMENT
Dr Julia Connors Owner of ClearEyes Cataract Clinic
Whether to expand her business & how
Nieves Morales best employee suggests they should not expand extra hours and
more work will dilute the good they have already done
No clear information on how customers knew about the clinic
How to convert potential patients into actual patients YIELD PROBLEM
initial calls and event visits never turned into real w ork for the clinic no number
available
5
2
8
No of procedure 3
Avg payment per procedure 1338
direct variable non staff cost 480
mortgage, taxes, and utilities (per month) 5500
rent from another company 2000
one time payment for expansion 60000
Income Expenses
from procedures 7068654 variable non staff 642240
from rent 24000 mortgage, taxes, and utilities (per month) 5500
Expansion
Possible by ending tenants lease and expanding into additional space
Would cost a onetime payment of $60000
On a 3-month notice
Current layout
Waiting area: 600-square-foot waiting area - 40 seats (each seat taking up about nine
square feet and equipped with an 8" x 10" screen for individual viewing)
Receptionist area
Two private intake rooms (each 10' x 10') where patients, friends, and family
members could sit with a patient services representative (PSR)
PROCESS
CHALLENGE
To reduce the No Show rate Only A=approximately 70% of insurance patients and 53% of
cash patients showed up for their surgery
Deposit system could not be implemented because of
o High percentage of patients paying through insurance
o Reluctance of cash-paying patients to make any non-refundable deposit -
majority of whom were lower-income
Steps Taken:
Offered regular, normal hours of a full-time position with good pay and benefits
Contributed to very low turnover among staff, good morale, and deft management of
patient interactions
Staff comfortable with each other and knowledgeable about ClearEyes and their tasks
Steady workforce developed through training, experience and positive attitude
towards employees
Good reviews from patients
Involved staff in hiring decisions
Anonymous peer feedback and annual performance reviews
Currently the firm is performing well above the Break Even Point and hence even if
there is an increase in cost in some of the aspects, such as increased number of staff,
higher incentives, etc. then also there should not be a major monetary issue.
EXPANDING THE CLINIC
Three expansion options, but understood that each presented major obstacles.
OPTION 01: To expand clinic hours to include Mondays and add an additional two hours to
the working d ay.
Employees objected to this option
OPTION 03: To expand at a new site within the greater Boston area.
Did not like the option herself - Would need her to spend even more time at the clinics
She carried out surgeries herself and pitched in as needed
family members often insisted on speaking with a doctor or owner of the clinic
Busy with the decisions, tasks, emergencies, communications, meetings with vendors
etc
Gabriela Herrera
One of the PSRs - bright, energetic, well-liked, and respected by the other employees
A natural leader
Outgoing and talkative
RECOMMENDATIONS
Increase the working hours in a step-wise process, lets say by 30 minutes in the initial
phase and then by 1 hour.
Hire few more staff members so that the average work distribution does not deviate
much.
Announce additional bonus for the employees exceeding the current working hours.
To resolve the No-Show issue, analyse the feedback of the newly improved survey
and take corrective measures.
The biggest reason for No-Show has been the lack of funds (33% for Intake and 27%
for Surgery). Collaborate with a mid-size bank, which gives loans at a highly
economical interest rate to the patients.
Since, ClearEyes has a positive Word-of-Mouth advertising among the customers, it
can curtail the amount dedicated to core marketing and advertising strategies. Hence,
the cost of each surgery may reduce to some extent.