- Capital requirements
- Reimbursement model
Here is the scenario:
St. Anne Hospital, a city-based non-profit community hospital, is looking at adding a diabetes treatment center (DTC) which will provide comprehensive diabetes care and education. This is in response to a population health needs assessment which identified a high rate of diabetes in the population surrounding the hospital. The population consists of 50% Hispanics, 25% Caucasians, 12% African American, and 13% recent immigrants from Northern Africa. Over 50% of the population is living within 200% or below of the poverty level. You have been asked to develop a business plan for the DTC which will be presented to St. Anne's Board of Trustees.
Reimbursement The dialysis center will charge a flat per visit fee of $450. This rate will stay constant. Contractual discounts for insurance is 30% of gross patient revenue. Yearly Staffing Costs by Clinical Lead Model Position FTEs Salary/Year/FTE Physicians 1 $200,000 Nurse Practitioners 2 $85,000 Nurse 2 $60,000 Dialysis Technician 1 $45,000 Assistant/Receptionist 3 $30,000 *** Benefits are assumed to be 25% of salaries Salaries will increase 3% each year Demand Forecasting Year 1 – 4882 visits Visits will increase 5 % per year Capital Requirements Construction Costs per Square Foot - $777.63 Project Costs per Square Foot - $1,308.49 Square Footage - 4,175 Expenses Operating Costs Utilities $208,750 Repair/Maintenance $40,500 Housekeeping $20,000 Telephone Service $16,806 Depreciation $32,000 Malpractice $50,000 Miscellaneous/Other $20,000 Supplies Medical Supply Costs $65,767 Other Non-Personnel Costs $95,351 All expenses listed to increase by 3% per year