Question

Household incomes and the cost of living are higher in urban than rural areas.

A nonprofit group of hospitals operates across urban and rural areas. The group sets the same prices and pays the same salaries for doctors and other professional staff at all hospitals.

1. Management has notice that there are long waiting lists for treatment at its urban hospitals. Can you explain this problem?
2. The company has had great difficulty in recruiting professional staff for its urban hospitals. Can you explain this problem?

1. What advice would you give to management?

Answer 1

A. People in rural areas are more attracted towards the city due to the greater availability of facilities in urban areas. Due to which comparatively more arrangement is available in the hospitals of urban areas on payment of the same amount as the rural hospital, people of rural areas go to urban area for treatment, people of urban area also get treatment from hospital. Which will increase the crowd.

B. Living in urban areas requires more money while rural areas cost comparatively less money, as professionals will prefer rural areas over urban areas because of the same salary in all hospitals, which will benefit them more. . Due to which there will be a shortage of professionals in hospitals in urban areas.

C. Management should keep in mind the cost of living in rural and urban areas.Instead of equal pay in hospitals in urban and rural areas, the salary should be fixed according to the cost of living in the city hospitals and keeping the rural cost in the rural hospital. Due to which hospitals will not have to face the above problems.