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Hospital Business Plan Example

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Table of Contents

Executive Summary

The strategic map of Marie Pears, a state of the art healthcare facility to be constructed in the city of San Bernardino, California, is outlined in this business plan. The facility aims to serve a community of 200,000 residents of San Bernardino and surrounding counties like Riverside that are medically underserved. San Bernardino poses unique health-care issues as a highly diverse county. To resolve the scarcity of essential healthcare facilities, the county is in desperate need of action. This void facilitates the execution of this initiative, the implementation of which aims to save lives and ensure that the population of California is involved and stable for a continued contribution to nation-building. From an economic point of view, due to its ability to produce positive revenue streams, the project has been considered worthwhile.

Hospital Business Plan Example

Description

Marie Pears Hospital is located in San Bernardino County, California, a duly registered and quality accredited hospital with licensed practitioners. The hospital aims to provide customers in San Bernardino and surrounding counties with nothing short of the best of the best facilities. The hospital will run as a family enterprise under the management of Mathew and Marie pears. Mathew pears are a business mogul who will also assume fundamental funding positions for the start-up. The donors and the federal government will, however, fund part of the start-up budget. The hospital is a 24-hour, seven-day week facility that will be available to patients around the clock. A regular medical call center staffed by competent health professionals will be available for the hospital. The staff of the facility will be highly qualified to ensure that the facilities within its corporate culture are delivered. To ensure that a healthy expert-client relationship is established, customer interaction will be handled by CRM software.

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  • Offered Facilities

Marie pears are in the business of ensuring that highly qualified healthcare professionals provide patients and consumers with state of the art healthcare facilities. Clinical laboratory services, outpatient treatment, inpatient care, anatomical pathology services, operating room services, X-ray testing services, case management of personal injury, occupational, speech, and physical therapy are among the services provided.

  • Vision and Mission

The goal of the hospital is to be a pioneer in the provision of health care services in all of San Bernardino and the surrounding counties and to be among the top healthcare providers in the USA in the next ten years as well. The hospital aims to meet the health care criteria of all income brackets (both low-placed and elite classes) of clients.

  • Structure of Industry

The hospital will be built on a stable basis to provide clients from all walks of life with quality healthcare services. The functional staff of the hospital is as follows: Hospital Director, Chief Executive Officer, Doctor / Dentist / Surgeon, Pharmacist, Nurses and Assistants, IT Specialist, HR Manager, Executive Sales and Marketing, Chief Accounting Officer, Executive Customer Service, and Cleaners.

Functions and Obligations

  • The Proprietors

The funding functions will be overseen by Mathew and Marie Pears. They will provide donors with the appropriate funding for up to 70 percent of the amount needed and the federal government will provide the remaining 30 percent.

While in the day-to-day operation of the hospital, they will not be directly involved. They will, however, carry on the vital task of informing practise, such as designing plans and finding potential areas for investment in healthcare subsectors. They will also review sales and, where appropriate, recommend improvements.

  • Leader CEO / Medical Officer

The direction for the organisation will be provided by the CEO. He / she will formulate the vision and mission statement, suggest a plan to accomplish the objectives set, attend to serious medical situations, fix prices and sign business agreements, recruit and fire, direct the remuneration process, and assess the success of the company and recommend modifications.

  • Physicians

It would be the responsibility of physicians to give patients competent medical services. As per their job description, they will also provide counselling services and perform any other assigned tasks.

  • The Drug Maker

For the dispensary shop, the pharmacist would be in control. He / she will monitor the processes in the medical store for inventory control. The pharmacist may also communicate with suppliers and perform any other role that the medical officer assigns.

  • Nurses

The nurse will treat the patients, treat their case management of injuries, provide the medical officer and the doctors with assistance, and play a helping hand in other tasks assigned to them.

  • Executive in Sales and Marketing

The sales and marketing manager will coordinate processes and procedures relating to the services and merchandise sales and promotion of his company. He / she would review the target demographics, analyse consumer dynamics, and analyse transactional data with the primary objective of attracting new and maintaining older customers.

He / she will also recognise prospects for growth, follow up on business leads and contacts, structure budget-fulfilling initiatives, and write proposals for negotiating prices and fees. The primary function of the sales and marketing executive will be to perform market research, conduct surveys, and conduct a feasibility study that will lead to increased revenues and sales.

  • The Informatics Expert

He / she will be in charge of handling the organisation’s IT infrastructure. He will manage the e-commerce portfolio, instal components of software and prescribe aspects of IT hardware for the company. He / she will also be in charge of the protection of the IT systems of the HER and the company.

  • Officer of Accounts

He / She will handle the organisation’s accounting and financial activities. The Accounting Officer will advise the CEO on economic conditions, structure budget fulfilment programmes, remit payments to contractors, handle payroll, forecast financial trends, review the financial health of the company, and ensure compliance with tax legislation. The accounting officer may also perform audits and create strategies for both economic and accounting purposes.

  • Officer of Customer Support

He / she will be responsible for ties with the media. They can treat inquiries from customers, manage communications and maintain contact with customers and other related stakeholders. Their primary function would be to establish relationships with consumers and other parties and to gather relevant information about general problems that will affect the efficiency of the company in one way or another.

  • Servicemen and Cleaners

They will be responsible for maintaining support facilities for grooming and handling, such as mail posting and office support.

Place Targeted

The total landmass of 27,000 square miles is in Riverside and San Bernardino counties (Loma Linda University Medical Center , 2019). The two-county area has recorded impressive population growth over the last two decades. For example, the counties of Riverside and San Bernardino were identified among the counties that recorded the most massive county-to-county population shifts in the USA during the 2007-2011 period. Although a mix of heavily populated urban communities exists, about 5 % of the population lives in rural areas. It is known that these two counties house the most diverse individuals in California. These two counties present a unique healthcare problem, with a diverse population projected to expand tremendously soon. In almost all, a diverse society implies inequality and diversity, including but not limited to wealth, levels of education, and socio-cultural aspects. The health status and well-being of communities are influenced directly by some of these factors. For instance, the socio-economic characteristics of the region provide a critically important context for the social elements that influence the health status of the population.

San Bernardino is ranked 38 out of 58 counties in terms of health outcomes. Out of the 58, Riverside is ranked 26. In terms of the emotional and physical well-being of the people, health results indicate how good a county is. Health outcomes are determined by many factors that affect health, among others, such as the quality of medical care, access problems, and diet. Local, federal, and even state-level policies and services affect health outcomes.

However, to enhance the length and quality of life for the communities, health outcomes may be modified. One such factor includes clinical treatment and all healthcare policies and services (Community Healthcare of San Bernadino,2019).

  • Key Indicators Reveal the Following

Communities in both counties have shown concern over low mental and physical health days compared to California and other top counties across the nation. Also, residents of the two counties have reported fair and even poor health compared to other regions across the country. There are fewer primary care physicians, something that causes a delay in clinical care and critical services. A summary of these findings is shown in table 1 below.

Table1. Access to healthcare and quality of life rankings

Access to healthcare and quality of life rankings

The revelations bubble down to one thing-the health status of san Bernardino and that of its neighboring county; Riverside is in dire need of intervention. Thus building a healthcare facility to meet these needs is indeed an area worth investing in.

Industry Analysis

Hospitals are essential institutions for any region or town. They offer emergency healthcare services needed by people from time to time. The facility seeks to provide healthcare services to about 200 000 people, which is expected to grow with time. The CEO has recognized pivotal aspects in the turnarounds, with prospects being that the healthcare industry will continue to remain stable. 

  • SWOT Analysis

    • Strengths

The facility’s strengths lie in the fact that there is a pool of highly qualified practitioners with vast medical field experience. This pool of experts is what the hospital prides itself in. The hospital also banks on its location-san Bernardino city, which also happens to be the county’s headquarters, thus presenting a range of strategic implications. The hospital will offer multiple payment options and stress on quality services for better patient outcomes.

    • Weaknesses 

The hospital is a tart up presents a range of weak points that need to be ironed out for the facility to be buoyant. For instance, it is expected that there will be high operating costs within the first few months with little turnover because the hospital is yet to be known. However, the facility is banking on its able marketing team to ensure that it is well promoted and made known to the target population in a possible expedition. 

    • Opportunities

There are unlimited opportunities that have been observed. The health state of San Bernardino County presents a situation that calls for immediate attention and intervention. This gap implies that the correct strategy can yield good investment returns.

    • Threats

The industry is not without its fair share of threats. The main threat facing the organization is competition, especially from already established government health facilities such as the San Bernardino community hospital. However, the CEO is determined to strike a breakthrough by offering state of the art services at competitive prices.

Budget

It is estimated that an investment capital of $ 1.5 million will be required for the setup, which will take six months of planning and execution before the facility can be operational. The owner will become fiancé 70 percent of this money, with the remaining 30 percent being provided by donors. 

The investment cost will cover legal expenses, start-up inventory, IT infrastructure set up, furniture and gadgets, equipment and machinery, and rent. Of this figure, an operating cost of $ 800,700 is expected in the first year. This money will cover all expenses, including payroll, miscellaneous, rents, insurance, administrative fee, travel and vehicle maintenance, marketing expenses, and taxes. This will also cover deprecation and interest expenses. The figure is expected to fluctuate steadily with a margin of between 

5-10 percent through the years due to fluctuations in interest rates, an increase in payroll expenses, depreciation, and other market-led factors. 

Market Analysis

The facility is eyeing people from all walks of life: people of all races, economic classes, and ages residing from San Bernardino and Riverside counties. The facility will be on the lookout for new trends and reforms in the healthcare industry.  

Recently, most providers have resorted to a consolidated approach to service delivery due to regulatory pressures. However, prospects are that the industry will continue to grow steadily due to plummeting unemployment rates, which have increased consumers’ disposable income and expanded insurance coverage. While labor costs are so high, turnover rates are high, too, with the right personnel. 

Risk

The most significant risk faced revolves around competition from both new entrants and existing players. But the odds are likely to be more stringent when considering existing players. While the healthcare sector requires a high initial investment cost, the rise of private equities has made it relatively easy for investors to want to invest in the industry. This has lowered the bar a bit, with many technology-based start-ups flooding the industry. Also, existing players seem to have the upper hand because they have an established customer base and existing customer loyalty, making it uneasy to break.

Proposed Solution

There is only one arsenal in the organization’s armamentarium that the facility is banking on- competitive positioning. As discussed, the organization is leveraging its highly qualified doctors, state of the art services, and competitive pricing to beat the existing competition. The organization is coming to the market well prepared to compete favorably. His strategic positioning is also something of an added advantage. Also, the hospital seeks to offer 24 hours of 7-day services throughout the week. The facility will also ensure that its workforce is not just able but willing to deliver services by providing them a competitive package. 

Marketing Strategy

The hospital will employ a unique approach in its marketing aspect. It should be noted that the facility is seeking to develop long-term friendly relationships with its customers. Thus, the facility will set up a customer relationships management department. This department will help maintain contact with the clients, market their organization’s services, and gather essential information that can be used to inform practices and improved service delivery. Moreover, the organization has a marketing department whose central role is to promote its services. The organization will base its undertakings on market surveys and research. This will ensure that services are engineered to meet customer needs at the end of the day, thus making the organization become the hospital of choice for many. 

The organization plans to use an integrated marketing technique that incorporates several marketing methods and channels, including traditional and digital marketing techniques. For example, the organization will use the mainstream media such as the TV and radio as advertisement platforms while resorting to social media marketing to ensure that the message is well spread (Broderick, & Pickton, 2005). The organization will also market its services through organized community services such as community health camps where free services will be offered for tackling specific healthcare needs.   

The organization will, however, not entirely rely on its internal marketing team for promotional services. Once in a while, the organization will hire external marketing experts to gather critical data, offer guidance and advice on how best to maneuver through the trends, and, most importantly, utilize marketing data to leverage turnover.

Financials

It is imperative to note that the organization’s sales forecast is based on research and feasibility studies and market surveys. Thus the figures are based on assumptions drawn from the field surveys. In the first year of operating, it is expected that the profits gains will be about $120,000.This is likely to come from direct client payments. Also, it is expected that a revenue gain of $250,000 will be realized from insurance firms and programs such as Medicaid. In the second year of operation, a revenue gain of $250,000 will likely be recognized from direct client payments and about $500,000 from insurance firms. In the third year, expectations are that direct client payments will yield $500,000, with insurance firms remitting approximately $1,500,000. 

Assessment

To determine whether the business is headed for a great future or whether the organization is headed in the wrong direction, it is essential to look at key performance indicators. For instance, revenue and assets through a period of about five years. It is imperative to determine whether the company has fulfilled its corporate goal according to its business acumen. For example, it is essential to assess whether the organization has been able to yield its cash flow without injecting more money. It is also necessary to lo at revenue growth. Is the organization meeting its quarterly and yearly revenue targets? Are these targets sustainable? Lastly, to determine whether the organization is growing or developing, it is essential to decide whether it is expanding or not in terms of its financial and non-financial assets such as equities and customer base.

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