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linda_us, Master's Degree
Category: Single Problem
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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Calculating the Cost/Benefit of a Phone Follow-up Program

Customer Question

Calculating the Cost/Benefit of a Phone Follow-up Program
You are the CNL on a cardiac unit. Upon discharge, patients are referred for follow-up at a cardiac clinic. There has been a problem with patients not keeping appointments to the clinic. In fact of 300 patients referred over a month’s time, 45 patients did not keep their appointment. You would like to see that number reduced, and believe that instituting a discharge follow-up phone call system on your unit might result in a decrease in missed appointments. If you reduce the number of missed appointments to 40, the clinic would gain an additional $275.
Of course, there are costs to implementing a phone follow-up system. You need to determine whether the costs to implement the system make sense for the gain in people keeping their appointments. One way of assessing the cost effectiveness of your telephone program is to do an ABC (Activity Based Costing) analysis. You have the following data:
Your nurses make $40/hr.
One nurse on the unit is assigned to make phone calls.
On average, calls are made to 10 patients a day.
The daily phone bill is $5.00 for one unit phone.
Each phone call lasts 15 minutes followed by 10 minutes of documentation.
JA: The Tutor can help you get an A on your homework or ace your next test. Is there anything else important you think the Tutor should know?
Customer: calculate a per person allocation rate, calculate the per person daily allocation rate. Then determine the monthly allocation rate to see if the program is cost effective.
Submitted: 10 months ago.
Category: Single Problem
Expert:  Donna Kakonge replied 10 months ago.

Dear Customer,

When is your deadline for this assignment?

Kindest regards,

Donna Kakonge, BJ, MA, TESOL, LLB, ABD

Customer: replied 10 months ago.
11pm October 10, 2016
Expert:  Donna Kakonge replied 10 months ago.

Dear Customer,

That is too bad. Unfortunately I am going to have to opt out of this question. I will be unable to have it completed in time.

Thank you though and I am sure another expert will help you.

Kindest regards,


Expert:  F. Naz replied 10 months ago.

I can provide the answer in next 2 to 4 hours, do you still need it, thanks.

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