Why is it 10%/75%?

Hospital's ill finances
New answer on Oct 30, 2019
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Anonymous asked on Oct 30, 2019

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Antonello
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replied on Oct 30, 2019
McKinsey | MBA professor for consulting interviews

Hi Priyatithi,
in that passage it is calculated the increasing revenue generated by doctors in case of elimination of billing time:
- now, during patient care (75% of their time) they generate $450k but during billing time (10%) they generate 0
- if that time is converted to patient care there will be a proportional increasing revenue -> 10/75 * $450k (like saying: if in 75 "time slots" they generate $450k, in 1 time slot $450k/75, in 10 time slots 10x).

Does it make sense?

Antonello

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Anonymous on Oct 30, 2019

That is very clear. Thank you so much!!

Antonello gave the best answer

Antonello

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McKinsey | MBA professor for consulting interviews
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