The cost ratio formula demonstrates the cost of a specific procedure or service. This value helps identify the cost-effectiveness of a service offered at the office. For instance, maintaining radiology services in a medical facility: Would it be cost-effective to continue this service in-house or to have patients go outside for radiological services? The cost ratio formula is: Total Expenses - Total Number of Procedures for One Month = Cost Ratio
1. Why do you think it is important to review costs and do an analysis on income and expenses? How would you as a medical assistant be able to use this knowledge to further your career and goals?
2. How does completing a cost-benefit analysis assist the facility in making business decisions ? What are the steps for completing a cost- benefit analysis?