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Business planning is a mapping of your vision for the future of an organization. As a healthcare
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Business planning is a mapping of your vision for the future of an organization. As a healthcare administrator, it is important that you are able to create an effective business plan. For this Assignment, you examine the following scenario and develop a business plan for the organization.

Scenario: A city-based community hospital is looking at adding an urgent care facility in a rural area. Urgent care is the delivery of ambulatory care in a facility dedicated to the delivery of unscheduled, walk-in care outside of a hospital emergency department. Development of the Rural Urgent Care (RUC) facility will facilitate access to care providers through extended service hours within closer geographic proximity to patients, families, and caregivers. RUC will act to alleviate demand for emergency department services by shifting lower acute patients to a less resource-intensive environment.

This project is in response to the shift from volume- to value-based healthcare. Payers and purchasers are interested in improving economic efficiency by shifting utilization from emergency department to lower cost settings, such as RUC. Several competing hospitals have hired emergency department physicians, as part of their integration strategy to participate in accountable care organizations (ACO) contracts. The hospital needs to respond to the competitive situation by making a sound investment in the RUC facility that addresses both financial and economic situations. The facility will be staffed with physicians and will include a radiology suite, laboratory suite, and other health-related ventures to help the hospital grow. You must help the board develop a business plan for this urgent care unit.

To prepare for this Final Project:

Examine the provided scenario.

Refer to the document Background and Financial Data for Investment in the Rural Urgent Care Center in this week’s Learning Resources.

Analyze the background and financial data for the RUC facility.

Note: Use the “Week 8 Business Plan Excel Template” to complete the financial analysis portion of this assignment

I need help with the following assignment ---- create a business plan (6–8 pages) that includes the following:

Executive summary

Market analysis, including:

Macro- and microeconomic implications of market competition

ACO payment incentives to the organization

How the RUC impacts economic efficiency

Financial analysis, including:

Capital requirements

Reimbursement model

Cost per patient visit

Pro forma, including:

Patient revenue

Operating expense

Income from operations

Total expense

Net cash flow

Assignment length: 6–8 pages, excluding a title page, supporting Excel spreadsheet, and references. 

 

 

USW1_WMBA_6608_Week08_Executive_Summary_Overview_ and_Financial_Data (1)

 

Pro Forma Income Statement

 

Pro Forma Income Statement
    Year 1 Year 2 Year 3 Year 4 Year 5
             
Visits   4,882 5,126 5,382 5,652 5,934
Revenue Per Visit   $450 $450 $450 $450 $450
             
Gross Revenue            
Patient Reveue   $2,196,900 $2,306,700 $2,421,900 $2,543,400 $2,670,300
     Gross Patient Revenue $2,196,900 $2,306,700 $2,421,900 $2,543,400 $2,670,300
             
Deductions from Patient Revenue          
Contractual   $659,070 $692,010 $726,570 $763,020 $801,090
     Total Deductions from Revenue $659,070 $692,010 $726,570 $763,020 $801,090
             
     Net Patient Revenue $1,537,830 $1,614,690 $1,695,330 $1,780,380 $1,869,210
             
             
Operating Expenses            
Salaries and Wages   $625,000.00 $643,750 $663,063 $682,954 $703,443
Employee Benefits   $156,250 $160,937.50 $165,766 $170,738.59 $175,861
Utilities   $208,720 $214,982 $221,431 $228,074 $234,916
Repair/Maintenance   $40,500 $41,715 $42,966 $44,255 $45,583
Housekeeping   $20,000 $20,600 $21,218 $21,855 $22,510
Telephone Service   $16,806 $17,310 $17,829 $18,364 $18,915
Depreciation   $32,000 $32,960 $33,949 $34,967 $36,016
Malpractice   $50,000 $51,500 $53,045 $54,636 $56,275
Miscellaneous/Other   $20,000 $20,600 $21,218 $21,855 $22,510
Variable Medical Supply Costs $65,767 $67,740 $69,772 $71,865 $74,021
Other Non-Personnel Costs $95,351 $98,212 $101,158 $104,193 $107,318
      Total Operating Expenses $1,330,394 $1,370,306 $1,411,415 $1,453,757 $1,497,370
             
Excess of Rev over Exp. From Operations $207,436 $244,384 $283,915 $326,623 $371,840
Cummulative Income   $207,436 $451,820 $735,735 $1,062,358 $1,434,198
             
Net Cash from Excess Rev (excl Depreciation) $175,436 $211,424 $249,966 $291,655 $335,824
Cummulative Income Net Cash $175,436 $386,860 $636,826 $928,482 $1,264,305

 

 

 

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