Business Consultant Proposal for formulating costing & pricing (Cost Essay

Business Consultant Proposal for formulating costing & pricing (Cost Cutting) of a Private Hospital - Essay Example Nafees has tie ups with various medical centres from where they get updated results related to various development in medical field. In this regard, the business that is dealing in hospital, should not only concentrate on generating profit, but also look towards taking care of the sick people. Though the business of hospitals is purely based on dedication, patient care and compassion but like other business they also look for generating revenue. The flow of revenue not only affects the delivery of service related to patient care, but also for the financial health of the organization. In order to generate revenue it is very important for the business to identify its expenses. The major expenses that the hospital incurs are research and teaching, labour cost, test and technology, liability costs and other supplies and capital expenses. Research and teaching: Hospitals conducts research and teaching facilities in order to make their services better and make their employees serve the patients better. This helps the hospital in upgrading themselves and provides modern facilities and techniques to the patients. Therefore, huge expenses are incurred in this. Labour Cost: Labour cost is the most significant expense that is incurred by each and every organization and hospital is not an exception in that case. The employees of a hospital include the directors, doctors, nurses and other official and administrative staffs. The salary and benefits are also huge in this regards, which is another major expense for the hospital. Technology and Tests: Advanced technology helps the doctors not only in diagnosing critical illness but also curing these. New arthroscopic equipments, surgical robots and CY scan are some of the modern technologies that are there in hospital. Capital expenses: the hospital may also incur expenses related to construction work related to expansion of the hospital and procuring of equipments. These are