Why Is It Dangerous to Justify Capacity Expansion Using Economies

question 28

Multiple Choice

Why is it dangerous to justify capacity expansion using economies of scale?

• A) It is far too specific to use as a basis for capacity decisions.
• B) Volume, capacity, and process considerations are looked at individually.
• C) The common notion that unit costs decline for larger facilities due to size is not always accurate.
• D) It requires consideration of quality, dependability, and flexibility.

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Definitions:

Clinical Capacity

Refers to the maximum number of patients or workload a healthcare facility or provider can handle effectively under standard conditions.

Emergencies

Sudden, urgent, usually unexpected occurrences or conditions requiring immediate attention or action.

First Priority

The most important task, consideration, or item that takes precedence over all others.

Room Preparation

The process of cleaning and setting up a room for a specific purpose, such as a medical examination or surgical procedure.