Proposal for a New Dental Department: Benefits, Risks, and Financial Information

This proposal outlines the benefits, risks, and financial information of establishing a new dental department in a hospital. It includes a break-even analysis and details on resources, reporting, and outcomes.

Running head: NEW DENTAL DEPARTMENT
New Dental Department
Name of the Student:
Name of the University:
Authors Note:

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NEW DENTAL DEPARTMENT
Contents
Executive Summary.......................................................................................................2
Outline............................................................................................................................3
Background....................................................................................................................3
The Proposal...................................................................................................................4
Aims...........................................................................................................................4
Benefits......................................................................................................................4
Risks...............................................................................................................................8
Process..........................................................................................................................11
Resources.....................................................................................................................12
Reporting of outcomes.................................................................................................12
The reports will be presented to the management of the hospital on weekly basis.
..............................................................................................................................12
Financial Information...................................................................................................12
References....................................................................................................................14
Attachment 1................................................................................................................17
Attachment 2................................................................................................................17

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Executive Summary:
The inhabitants of the area are in dire need of a dental facility within the vicinity of
the locality engaged in providing the care at cheaper rates. The purpose of the report
is to establish whether the proposed new department will yield value to the locals and
the inhabitants of the locality in the long run. For the purpose of ensuring that detailed
analysis of the prospect is being taken up the help of several tables has been taken up.
Within the table details regarding the benefits, the risk that are involved and the
revenue that is going to be incurred in respect of the company has been objectively
analysed and listed out. In addition to that an objective break even analysis of the
same has been taken up to ensure that clear picture is being presented in front of the
management of the company to ensure that the target revenue that has to be achieved
by it for the purpose of ensuring that the costs incurred by it is recovered entirely.
After the analysis it was found that there are several capital as well as revenue
expenditure that are going to be incurred by the entity for the purpose of
implementing and integrating the new department within the hospital.

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Outline
In the present report an effort will be made for the purpose of analysing the
various costs and the revenue that are going to be incurred and generated by way of
operating a dental clinic.
Immense value will be created in respect of the Local Health District from
this. The reason being that due to the unavailability of the dental services in the
nearby area the inhabitants had to travel long distances for the purpose of getting the
service in relation to this (Peterson et al., 2015). It is of utmost importance that the
service is being introduced for the purpose of ensuring that the same is being received
by them in the locality at a reasonable price.
Background
Under the present scenario the inhabitants of the area are facing immense
problem in respect of availing dental facility. The reason being that the hospital of the
area doesn’t have a dental department. This has forced the inhabitants to travel long
distances for the purpose of availing the dental care that they are in need of. The cost
that is being incurred by them in the present scenario is immense (O'Neill & Ensle,
2015). Due to the fact that in addition to the consultation fees to be paid to the private
practitioners, the inhabitants have to incur huge travel costs. For the purpose of
mitigation of this issue it is of utmost importance that a new and improved dental
clinic is being opened up in the area. The same would be engaged in the process of
delivering decent dental care to the inhabitants at a reasonable price (Wright 2015).

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The Proposal
For the purpose of mitigation of the issues that have been raised in respect of
the present situation, a proposal is being made that the hospital must ensure that a new
department is being opened up for the purpose of addressing the issue fo the dental
care of the patients (Stiglitz, J. E., & Rosengard, 2015). To ensure that the same is
becomes fully operational and creates value in the long run the hospital will have to
ensure that the costs that are being incurred in its respect will be recovered from the
revenue that is being generated by it.
Aims:
The main aim of the proposal is ensuring specialisation of the care that is
being given to the patients in respect of the dental problems. It is to be seen that a
specific and new department is being opened up for the purpose of delivering quality
care to the customer in this respect. The main purpose of is to maintain the cheap
price that is offered by the hospital at present and ensure that specialisation is
achieved. By adopting this approach the hospital will be able to break-even in a very
short period of time (Aung et al., 2016). If the hospital opens up a new department
that is directed towards the addressing of the issue only then the efficiency of the
hospital’s services in this respect would increase. After the efficiency of the services
that are being provided by the hospital improves the revenue that is being generated
by the hospital from this source will increase rapidly. The same will be achieved by
the entity after the services and the products are being offered to the patients at
affordable prices without interfering with the quality.

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Benefits
 Efficiency gains:
The improvement in the quality of the services that are being offered to the
patients will increase many times. This is one of the most significant
improvements in the efficiency of the hospital. The human resource that will be
arranged bit eh hospital in this respect will be able to deliver better quality of
service if an entire department is being dedicated for the same purpose. The
services provided by the doctors that are being hired for this job will be
transferred to the right department (Verguet et al., 2015). The costs that are being
incurred in respect of the department will be allocated to the right department.
This will improve the cost allocation processes of hospital.
This in turn suggest that the overhead that is being incurred by the hospital in
respect of providing quality service to the patients.
 Potential savings/increased costs:
The hospital was previously losing its revenue due to the unavailability of
Location of the requisite facility in respect of providing Quality Services to the
patients related to dental facilities. Hence huge portion of hospitals revenue was
getting lost this loss is referred to as opportunity cost though the hospital will have
to incur heavy capital expenditure at the beginning stage but the corresponding
revenue that is being generated from utilising them will help pay recovery of their
cost in a very short span of time (Millward, 2017). Location of the requisite
facility in respect of providing Quality Services to the patients related to dental
facilities. Hence huge portion of hospitals revenue was getting lost this loss is
referred to as opportunity cost though the hospital will have to incur heavy capital
expenditure at the beginning stage but the corresponding revenue that is being

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generated from utilising them will help pay recovery of their cost in a very short
span of time. the capital expenditure will include expenditure in relation to human
resource equipment’s and other facilities like electric connection water connection
waste disposal Location of the requisite facility in respect of providing Quality
Services to the patients related to dental facilities (Chan, 2014). Hence huge
portion of hospitals revenue was getting lost this loss is referred to as opportunity
cost though the hospital will have to incur heavy capital expenditure at the
beginning stage but the corresponding revenue that is being generated from
utilising them will help pay recovery of their cost in a very short span of time the
capital expenditure will include expenditure in relation to human resource
equipment’s and other facilities like electric connection water connection waste
disposal. The reason for the speedy recovery of the expenditure that has been
incurred by the hospital is that it will be able to increase the number of patients
who will be availing the facility of Dental Care provided by it. The increase cost
of hospital will also include some revenue expenditure by way of disinfecting
products disposable gloves syringes and miscellaneous (Andrews et al., 2017).
 What are the expected benefits of this proposal?
Factor Benefits
Patients The most important benefits that will be received by the patients of the
hospital is that they will be able to get specialised treatment in respect
of dental care. As prior the patients were not able to consult an expert
in the field of dental they were forced to remain unsatisfied with the
care that was being received from the hospital even if their condition
was very serious. The availability of an entire department solely

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dedicated to this purpose will enhance the satisfaction that is being
received by the patient.
Facility With the opening of a new department the hospital will have to ensure
that the corresponding requirement of the equipment and the other
elements like chair, electricity, expansion of the space that is present
with the hospital etc. improves rapidly. This will ensure a face lift of
the entire hospital by increasing the quality of the facility that is being
offered by it to the patients.
Clinicians The advantage that the clinicians will receive is the streamlining of the
duties that are being assigned to them. With the opening of the new
department the hospital will allocate specific tasks to the clinicians that
will improve their knowledge base and skills too.
Risks
Risk Issue Severity Impact Mitigation Plan Notes
Financial risk The financial
risk is high.
The reason
being that the
hospital will
have to incur
huge costs in
This will
increase the
interest and
the overall
financial
burden of the
hospital in
The hospital
must ensure that
it takes loan
after considering
all the sources.
In addition to
that is must
The hospital
must aim for
less financial
burden.

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NEW DENTAL DEPARTMENT
Risk Issue Severity Impact Mitigation Plan Notes
respect of the
equipment to
be purchased
and the
expansion of
the space.
the future. ensure that other
sources should
be sued up for
the collection of
the funds other
than the loan
like donations
etc.
Patients The risk
associated with
the patients is
moderate. The
risk associated
with them is in
respect of the
number of
patients that
would turn up
for the availing
the dental
services
provided by the
hospital.
The revenue
earned by the
hospital has
a direct
relationship
with the
number of
patients.
Decent quality
care and facility
must be
provided to the
patients to
ensure that the
hospital is able
to retain the
patients.
The increase
in the number
of patients of
the hospital is
necessary for
ascertaining
that the entity
is able to
successfully
run the dental
care services
in the future.
Insurances The risk is This will Cheaper, more The cost that is

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NEW DENTAL DEPARTMENT
Risk Issue Severity Impact Mitigation Plan Notes
moderate. The
risk is mainly
concerned with
the amount that
is being
incurred by the
company in
respect of the
insurance of
the new
equipment that
have been
acquired and
installed by the
hospital.
increase the
burden on
the hospital
in respect of
the amount
that is being
repayable by
it.
effective and
efficient
insurance
product has to be
selected by the
company for the
purpose of
ensuring that the
degree of
financial burden
of the entity is
being improved
significantly.
associated
with the
insurance
amount that is
repayable by
the hospital is
very high.
Process
 Action (insert as a flow chart as attachment 1)
A team will be formed for the purpose of overlooking and monitoring of the various
activities and the elements that are involved in the commissioning of the entre
process. For the purpose of formation of the group the entire human resource that is
available with the hospital will have to be reviewed and the qualification will have to

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NEW DENTAL DEPARTMENT
be reviewed (Kaiser et al., 2016). The cost will be listed out that will be incurred in
the process. Then the list of the sources of the financial funds of the company will
have to be made. Some financial advisors will also have to be hired for ascertaining
the success of the project.
Resources:
The resources that are going to be required for the purpose of development of the new
project will consist of the following:
a) Dentist:
Only doctors specialising in the field will be employed for delivering specialised care
to the patients.
b) Dental assistant:
The department is going to have to appoint assistants who are well trained for the
purpose of carrying out the requisite jobs and the chores involved in the process of
dental.
c) Surgical clothing:
The department will require clothing in respect of dental care the reason being that for
the purpose of conducting surgery special clothing will be required by the surgeons of
the company (NAGARIA, 2016).
Reporting of outcomes:
Experienced cost professionals will be hired for the purpose of ascertaining
the costs that are going to be incurred and conducting its monitoring. They will be
assigned with the duty of reporting the management with the information regarding
the costs that are being incurred and the revenue that is being generated and other

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details like the savings in the costs etc. to the management of the hospital (Nair et al.,
2017).
Financial Information:
In respect of the financial information a break even analysis of the entire proposal has
bene made. This will ensure that the entity that the management of the entity is
assured of the fact and details of the level of revenue that is to be generated by it for
meeting up with the costs that have been incurred by it for implementing the proposal.
Within the breakeven analysis all the relevant items have been included like the costs
incurred for the dentists, the surgical equipment and the requisite human resource.

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References
Andrews, R. J., Khan, T. M., & Crisp, N. (2017). Physicians, poverty, and profits: can
Robin Hood finance health care in developing countries?. World
neurosurgery, 99, 786-789.
Aung, T. W., Jain, G., Sethuraman, K., Baumgartner, J., Reynolds, C., Grieshop, A.
P., ... & Brauer, M. (2016). Health and climate-relevant pollutant
concentrations from a carbon-finance approved cookstove intervention in rural
India. Environmental science & technology, 50(13), 7228-7238.
Chan, R. K. (2014). Policies and Politics: The Alternatives and Limitations of Health
Finance Reform in Hong Kong. In Contemporary Social Issues in East Asian
Societies: Examining the Spectrum of Public and Private Spheres (pp. 209-
218). IGI Global.
Chi, Y. L., Krishnakumar, J., Maurer, J., Loncar, D., & Flahault, A. (2016). Who
should finance WHO's work on emergencies?. The Lancet, 387(10038), 2584-
2585.
Choonara, S., Goudge, J., Nxumalo, N., & Eyles, J. (2017). Significance of informal
(on-the-job) learning and leadership development in health systems: lessons
from a district finance team in South Africa. BMJ global health, 2(1),
e000138.
Kaiser, K., Bredenkamp, C., & Iglesias, R. (2016). Sin Tax Reform in the Philippines:
Transforming Public Finance, Health, and Governance for More Inclusive
Development. Directions in Development—Countries and

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Regions. Washington, DC: World Bank. Available at: https://openknowledge.
worldbank. org/handle/10986/24617.
Millward, R. (2017). Urban government, finance and public health in Victorian
Britain. In Urban Governance (pp. 47-68). Routledge.
NAGARIA, M. S. (2016). Finance: A vehicle for enhancing Performance in Indian
Micro, Small and Medium Enterprises (MSMEs). Journal of Finance, 2395,
7492.
Nair, S., Jagannathan, A., Kudumallige, S., Kumar, C. N., & Thirthalli, J. (2017).
Need for micro finance self-help groups among women family caregivers of
persons with mental disability in rural India. Mental Health and Social
Inclusion, (just-accepted), 00-00.
O'Neill, B., & Ensle, K. (2015). Personal Health and Finance Quiz&58; A Tool for
Outreach, Research, and Evaluation. Journal of Human Sciences and
Extension, 3(1), 149-149.
Peterson, L., Comfort, A., Omasanjuwa, E., Ambrose, K., & Hatt, L. (2015).
Extending health insurance to informal sector workers in urban settings:
findings from a micro insurance pilot in Lagos Nigeria.
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the Public Sector: Fourth
International Student Edition. WW Norton & Company.
Verguet, S., Olson, Z.D., Babigumira, J.B., Desalegn, D., Johansson, K.A., Kruk,
M.E., Levin, C.E., Nugent, R.A., Pecenka, C., Shrime, M.G. and Memirie,
S.T., 2015. Health gains and financial risk protection afforded by public
financing of selected interventions in Ethiopia: an extended cost-effectiveness
analysis. The Lancet Global Health, 3(5), pp.e288-e296.

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World Health Organization. (2015). Tracking universal health coverage: first global
monitoring report. World Health Organization.
Wright, J. (2015). Essential package of health services country snapshot: Indonesia.
Xiao, J. J. (2016). Handbook of consumer finance research. Springer.

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Attachment 1
Process flow chart for new service
Attachment 2
Financial report – total life costs for the proposal
A committee for the implementation and the commencement of the
proposal has to be establishedIt will comprise of financial advisors and experts
and a team of specialists doctors.
The committee will ensure the success of the
proposal.
Recognition of the financial sources of the hospital will be done
The financial advisors and the experts of the feild
will ensure the implementation of the optimal
capital structure for the hospital
All the costs associated with the sources of funds
will have to be taken into consideration.
Ascertainment of the costs inolved
The help of the experts will be taken in this reps The experts are needed to consider all the
relevant expenditure for the decsion making
process.

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Break-Even Analysis
Income
Calculation Explanatory Notes Category Product/Service Formula Calculation Explanatory Notes
449,280.00$ I need 2 Dentist to run my Dental clinic Income Regular Dental check-ups 327600 $327,600 Generally most patient comes for regular checkup due to pain or infection so
124,800.00$ 2 Dental assistant are required to assist Doctor.doctor Dental Fillings 421200 $421,200 The average charge for dental filling starts from $ 150 and at beginning atleas
59,904.00$ I need one lab tecnician to perform x-rays Root Canal Treatment 265200 265,200.00$ The average cost for root canal treatment is $170 and on starting 3-5 cases for
37,440.00$ I need 1 hygienist to provide excellent health care and instructionDental Crown 936000 936,000.00$ The average charge for dental crown starts from $1500 and 2-3 case might com
11,232.00$ 1 cleaner is needed to maintain cleaniness of clinic every 2 hours a dayX-ray 182520 182,520.00$ The expoected charge for oral X-ray per film start from $45 and almost 50 % p
Oral Hygiene Instruction 109200 109,200.00$ The minimum charge for oral hygiene instruction can be charged $50 since the
102,398.40$ TOTAL INCOME 2241720
786,240.00$ Surgical gowns can be washed, so expected use 20 per yearBreak Even Calculation
146,016.00$ syringe is disposable, so on estimation 2 syringe is nedded per surgery for medication and anesthesiaTOTAL INCOME $2,241,720
199,680.00$ cotton,gloves, caps, treatment covers are used in all patient and are disposed therfore used 1 time per patientminus TOTAL COSTS PER YEAR $2,241,690
168,480.00$ Disinfectant, hand sanitizer, lotion must be used before and after treating every patient to practice hygiene so it is frequently used.Profit / Loss $30 0
23,400.00$ X-ray and other dental instruments are used approximately in every patient so average 450 $ is spent on electricityIf the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income.
1,768.00$ Maximum water bill expected to be 35 $ per week
2,652.00$ Phone and electricity bill is expected to be 52 $ a week
$41,600 I need 1 receptionist 6 days a week and I can provide the software so the receptionist can handle the accounting of the clinic as well
$46,800 I need minimum 5 room building on an average location to run my dental clinic, which is expected to charge $900 per week on average
40,000.00$ I need computer, x-ray, software, IT, furniture to startup a average dental clinic so average expense on equipments and supplies amounts to be 200000 at beginning of business
10% Changes in Break-Even
Income
Explanatory Notes Category Product/Service Formula Calculation Explanatory Notes
Income Regular Dental check-ups 374400 $374,400 Due to high salary/wages and based on market research, the fees has been
Dental assistant is mostly needed during surgeries which can be maintained according to appointments so I need dental assistant 5 days per weekdoctor Dental Fillings 463320 $463,320 Due to increment of cost of dental filling products in the market, there has
Root Canal Treatment 265200 265,200.00$
Patients usually don’t appoint for dental hygienist individually, but they prefer to get advice during their regular checkup so I can reduce the shift of dental hyginiest from 4 days to 3 days.Dental Crown 936000 936,000.00$
X-ray 202800 202,800.00$ I purchased mordern equipments and supplies which can give good qualit
Oral Hygiene Instruction 109200 109,200.00$
Flouride treatment 52416 52,416.00$ Due to increasing demand of flouride treatment as per the costumers, we
TOTAL INCOME 2403336
Break Even Calculation
Syringe are widely used in dental clinic and since its disposable and I can deal with better company where I can buy good quality syringes in a better price so I deducted my expense on syringe from $13 to $11.TOTAL INCOME $2,403,336
minus TOTAL COSTS PER YEAR $2,184,542
Profit / Loss $218,794 0
If the Profit/Loss row is NEGATIVE, your service is LOSING MONEY. Increase your income.
As per the result, dental clinic have achieved 10.015% growth in profit. Due to reducing unnecessary costs like redusing the days staff working which was no

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NEW DENTAL DEPARTMENT