📘 Question
The COO wants to put a number on the opportunity. Orthopedics has 18 allocated block hours per week at 91% utilization and could fill 6 more hours per week if given the capacity. Neurosurgery has 22 block hours per week at 58% utilization. Assume 48 operating weeks per year and a contribution margin of $1,800 per OR hour for Orthopedics cases. How much annual margin is recovered by shifting 6 hours per week from Neurosurgery to Orthopedics?
📊 Case Exhibit
Your answer:
The COO wants to put a number on the opportunity. Orthopedics has 18 allocated block hours per week at 91% utilization and could fill 6 more hours per week if given the capacity. Neurosurgery has 22 block hours per week at 58% utilization. Assume 48 operating weeks per year and a contribution margin of $1,800 per OR hour for Orthopedics cases. How much annual margin is recovered by shifting 6 hours per week from Neurosurgery to Orthopedics?
