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Product Cost Structure For Healthcare

Decent Essays
Product Cost Structure: To form an accurate depiction of how much doc.com would cost to develop and implement, Healthify modelled out the costs of the system over a 10 year period (Appendix C). With respect to raw resources, the most significant expenditures are server space and computing power. Costs were projected by finding comparable prices of cloud computing power, storage and relational database management from Amazon Web Services and converting them into Canadian dollars (Appendix D). The core expenses are related to human capital, as an appropriate cohort of developers, managers and support staff are to be hired to develop doc.com. Additionally, cash incentives will help speed up the system adoption and integration processes as doctors…show more content…
Currently, independent business units, whether those are specialists, family doctors, hospitals, or clinics, service different customers. While business units may have shared clients, the lack of standard data collection processes essentially make each patient who has not previously visited the business unit a “new” patient. There is a highly decentralized structure, and each business unit benefits from the local autonomy in deciding how to treat customers and collect data. The business units individually control the entire process design and IS decisions are done at the business unit…show more content…
Currently, each individual business unit is siloed. When a patient goes through the internal structures within the healthcare system, they view each business unit they use as its own function. The patient does not experience the interconnectivity of the processes; it only identifies the vertical integration within the system.

doc.com proposes a change from a function-orientation to a process-orientation through facilitating a streamlined customer journey. Instead of a patient considering what procedures they have at the hospital, family doctor, and specialist seperately, doc.com creates connectivity between business units. As a result, a patient would treat a broken bone at the hospital, have a family doctor examine it, and then visit a specialist for any complications (Appendix F). It is that movement from a functional-orientation to a process-orientation that would streamline and optimize wait times and family physician
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