You are the administrator of a local for-profit, multiple-physician community clinic owned by five local physicians, specializing in internal medicine, womens health, pediatrics, orthopedics, and oncology. Your office just underwent an organizational change and one office receptionist was eliminated, saving the office $40,000 per year in labor costs. However, there have been a number of complaints that all patients cannot be processed due to the increased flow of patients. Two weeks later you begin to hear that wait times for appointments have increased, and one specific patient was not able to be seen. That patient now has developed an infection and requires surgery.

Describe the effects that labor shortages of key personnel and rising costs of labor have on profitability. How would you determine how to allocate your money? Be sure to think critically about the impact that quality outcomes and patient outcomes have on financial resources.