Financial Concerns for a Physician Dermatology Practice

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Organization’s Concerns and their Solutions
According to Asdi and Putra (2020), there are only about 9,600 dermatologists and 7,800 dermatology practices in the US. This is an acute shortage for a country with about 330 million people. It is very difficult to book an appointment with a dermatologist, and such deficiency has driven up costs for dermatologist services. Healthcare systems and organizations are struggling to recover from the turbulences of the Covid-19 pandemic (Lee & Lee, 2021). Due to the nightmarish pandemic, most organizations cannot acquire new practices or even sustain current ones. As a leader in my organization, I will be apprehensive about investing in this endeavor. However, there is some hope that societies are steadily recovering, and my organization might be heading in the right direction (Lee & Lee, 2021). Therefore, the main concern will be how affordable the practice can be for the organization when the national healthcare system is in a crisis.
About 45 million patients visit dermatology units in the US, and I will want to weigh if the potential number of visits can help us sustain the project. Suppose the project, for instance, requires $10 million to be recovered in five years. In that case, this may not be the most appropriate time since it will mean that the organization invests money that will be recovered in a long time before the facility gets out of the red area. However, that will not mean that the project should be fully canceled.
Practice’s Concerns and their Solutions
According to Girolomoni (2017), seeing a dermatologist for consultations alone costs upwards of $100, which points to the possibility of extremely high costs when one has to be treated or given medications. Therefore, the practice will be eager to know if my organization can sustain it or if it will close shortly after opening. It will not be prudent to acquire the practice if the organization is not located in a place where clientele can afford the services or where culture does not support services provided by dermatologists. If the dermatologist practice is being acquired on loan due to the challenging financial times, those selling it will also want to assess the organization's creditworthiness. The organization may choose to open offsite units in affluent urban neighborhoods where the rich may be interested in the services to address these concerns. This will boost financial capacities for the project and lure investors when it appears that the idea is viable and earns high revenues.
Determining Staffing Appropriateness
One of the most appropriate ways of determining staffing appropriateness is by relying on experienced auditors. I will use auditors to weigh current incomes against the organization's wage bill to assess if the company is understaffed or overstaffed. The auditors will afterward project future cash flows while factoring in the new project and its potential cash flows to help me as a leader understand if it needs more employees or if it should jettison some current ones. If the audits reveal disguised unemployment within the organization, I can lay off some in line with employment laws (Lee & Lee, 2021). This...