HCS449 Week-1 What is Business Plan
What Is a Business Plan?
Instructions:
In this course you will develop a business plan for a community hospital
that is considering the addition of an urgent care center. Each week you
will complete content needed for your business plan. The purpose of
this plan is to evaluate the feasibility of the service and make a
recommendation on the location and structure of the center. It will serve
as a roadmap. The plan will help you analyze and evaluate marketing,
financial and economic considerations, and technology needs to help
you make the best decision on location, services offered, and
operational structure.
Create a 10- to 12-slide Microsoft® PowerPoint® presentation that is an
education tool showcasing your knowledge of the business plan
process and its purpose. This business plan presentation is generic in
nature; other assignments in the course will focus on Community
Hospital.
• Explain the purpose of a business plan.
• Explain the types of information and data you might include in a
business plan and why that data would be meaningful to the plan.
• Describe how the information provided would be organized to lead
the audience to a conclusion and decision.
Cite 3 peer-reviewed, scholarly, or similar references to support your
presentation. Properly cited references are to be included in the note
HCS449 Week 2 Capstone
Select one of the following options to complete this assignment:
- Your current role in a hospital setting
- A professional role, such as an administrator, nurse, respiratory therapist, health information specialist, physical therapist, or radiology technologist
Write a 700- to 1,050-word paper that summarizes certifications and continuing education that would be appropriate for a professional role in a hospital or other applicable health care setting.
- Identify a professional organization that would provide professional development opportunities for the role you selected.
- Describe professional development and other opportunities the professional organization would provide to you as a member.
- Explain the importance of being a member in a professional organization.
- Include the link to this organization.
Cite 2 peer-reviewed, scholarly, or similar references to support your assignment.
Format your assignment according to APA guidelines.
HCS449 Week-2 Signature Assignment SWOT Analysis
Review the SWOT Analysis Microsoft® PowerPoint® prior to completing this assignment.
Based on the Community Hospital scenario located in this week's required reading, conduct a SWOT analysis to generate a list of perceived strengths, weaknesses, opportunities, and threats for the health care organization.
- Strengths and weaknesses are traits internal to the health care organization (e.g., strong physician loyalty to hospital, aging building, and availability of financial resources).
- Opportunities and threats are external to the health care organization (e.g., a mall facility available for lease or a competitor organization opening two physician practices in your market).
Use the SWOT Analysis worksheet provided to complete this assignment.
Write a 700- to 1,400-word analysis that incorporates the key components of a SWOT analysis for the scenario described above to generate a list of perceived strengths, weaknesses, opportunities, and threats. The analysis will include the following:
- Analyze how this SWOT analysis will be used to form a final recommendation in the full business plan.
- Analyze the limitations and advantages of conducting a SWOT analysis on your own (versus with a group of stakeholders).
- Use the table provided to record your analysis of the information from the strategic planning scenario and generate two factors for each of the SWOT categories (strengths, weaknesses, opportunities, and threats).
Cite at least 1 peer-reviewed, scholarly, or similar references to support your assignment.
HCS449 Week-3 Staffing Matrix Worksheet
Staffing Matrix
Resources: University of Phoenix Career Center and U.S. Department of Labor
Create a staffing matrix noting the roles you recommend for the center.
Research salary ranges in your region and list the salary per hour for each role you recommend.
Describe why you selected those particular roles and staffing mix and how the salary cost will affect operations of the center.
Complete the table below.
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Role | Description of the Role | Salary | Justification for Position |
| Physician |
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| Nurse Practitioner |
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| Nurse |
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| Certified Medical Assistant |
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HCS449 Week-4 Business Recommendations
Review the supplied data presented in the Business Plan Scenario.
Write a 1,050- to 1,400-word paper in which you identify and recommend technology needs, hours of operation, and services offered for the health care organization.
Include the following in your paper:
- Recommend which services should be provided at the center and describe why they are appropriate at this site.
- Describe the hours of operation and why you recommend those hours.
- Describe the major equipment and technology needed to provide the recommended service. Include a projected cost for that equipment.
- Discuss the type of corporation you think the center should consider (e.g., a department of the hospital or an LLC) and why.
Cite at least 2 peer-reviewed, scholarly, or similar references.
HCS 449 Capstone
Business Plan Scenario
Background
Community Hospital is a 180-bed acute care hospital that is qualified as a not-for-profit facility. The hospital was originally a county-owned facility and transferred status to an independent facility three years ago. The hospital receives no external funding from governmental agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their triannual survey last year. The hospital has an aggressive quality management program and a low volume of medical malpractice claims. The hospital is located in Bedford, which is a city of 50,000 people with 80,000 people in the regional market. The hospital provides a general range of acute care services including medical and surgical, rehab and emergency care. The president of the hospital has asked you to evaluate the feasibility of establishing an off-site urgent care center at a local mall. You will use data provided in this scenario to make your decisions and recommendations.
Current Performance Analysis
Mission and Vision
Our Mission- To improve health by providing high-quality care through a comprehensive range of services.
Our Vision- Community Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five-year vision is to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology, oncology, and women's services. Currently the hospital employs three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist.
Market Forces Affecting Hospital
Volumes
Patients
The continued growth of chronic disease will require changes to the care management model.
Percent of population by age:
|
| Five years ago | Five years from now |
| Under 18 | 24 | 18 |
| 18 to 44 | 46 | 32 |
| 45 to 65 | 26 | 30 |
| Over 65 | 4 | 20 |
Over 53% of residents have at least some college education, with just over 29% possessing an associates, bachelors, or graduate degree. Over 90% of residents possess at least a high school diploma.
The average unemployment rate in the county is currently 9.9%:
Market share distribution percentage with major competitor:
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| Five Years Ago | Last Year |
| Community Hospital | 48 | 35 |
| Competitor | 30 | 43 |
| Out of County Hospitals | 22 | 22 |
Patient Origin by Zip Code
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Payment
Continued focus on pay-for-performance and increased wellness programs. Affordable Care Act creating more covered lives, however often with high deductibles.
The median household income for county residents is $59,548. On average, households in county earn more than the state median household income of $44,446 and more than the national average of $53,650. The addition of a new automotive manufacturing plant to the local market this coming year is projected to add 1,500 production line jobs and 300 administrative jobs by year end. Median income for the production positions is estimated at $45,000 and will provide health, vision, and dental insurance benefits.
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As part of your review of this data, consider that a portion of the population will become Medicare eligible, the addition of manufacturing positions that include benefits will increase commercial insurance coverage and changes from the Affordable Care Act will increase the number of patients in the market with insurance coverage.
Employers
Expected growth in large employers with addition of automotive factory in northwest sector of county.
Physicians
Continued shortage of medical staff, especially in orthopedics, oncology, and primary care will require increased recruitment efforts.
Competitors
Other hospital in county, Hanover County Hospital, has an updated facility, which has drawn more market share to their facility.
| Competitor | Key Areas of Competition | New Programs and Facilities | Risk to Market Share |
| Primary Competitors | |||
| Hanover County Hospital | Facility upgrade
Quality Scores | Significant renovation of core hospital to update aesthetics
Added new wide-bore MRI machine last year
Reaching 95% percentile in five of six HCAPS categories | Drawing patients to newer facility
Accommodates heavier patients
Patient perception of higher quality and patient satisfaction |
| Medical Center in county south of Stevens | Physician clinics
Financial stability | E-visits with specialists
Low debt and high cash on hand | Drawing patients out of primary and specialty care at Stevens
Ability to cash flow projects |
| Secondary Competitors | |||
| Retail pharmacy instant clinic | Low acuity office visits | Pharmacy added instant clinic in north end of county 6 months ago | Loss of patients from primary care physicians practices |
Technology
Addition of e-visits by large hospital system in adjoining county has drawn more market share to their physician practices.
Regulatory Changes
Health care reform through the Affordable Care Act has increased the number of patients with some form of insurance payment. These patients are now seeking care in greater numbers from a primary care physician. Community Hospital currently struggles with accommodating patient scheduling requests to establish care with a primary care physician.
Financial summary
| This year | Last year | |
| Operating Revenues | ||
| Net revenues from services to patients | 343,737,280 | 344,726,245 |
| Other operating revenues | 16,846,309 | 20,311,534 |
| Total operating revenues | 360,583,589 | 365,037,779 |
| Operating Expenses | ||
| Salaries and benefits | 192,053,379 | 182,853,245 |
| Supplies and other expenses | 130,173,477 | 135,560,131 |
| Depreciation | 18,969,799 | 20,644,157 |
| Interest | 2,695,623 | 2,226,437 |
| Foundation | 628,184 | 1,182,308 |
| Total operating expenses | 344,520,462 | 342,466,278 |
| Income from Operations | 16,063,127 | 22,571,501 |
Urgent Care Location Options
Location One is located at a strip mall on the north side of town with a twenty-minute drive to the main Community Hospital campus. The potential lease space is a vacant storefront that previously housed a video store. The building is mostly an empty shell that would require $30,000 in renovation to create acceptable medical office space with four exam rooms.
Lease cost of location is $3,000 per month for a total of 1,800 square feet. Utilities are not included in the lease rate.
Location Two is located at a strip mall location on the south side of town with a thirty-minute drive to the main Community Hospital campus. The lease space is a vacant grocery store. The building is mostly an empty shell that would require $35,000 in renovation to create acceptable medical office space with four exam rooms. However, the total space is very large, at 5,000 square feet, so there are other options available that could also be housed in that space.
Lease cost of location is $6,500 per month for a total of 5,000 square feet. Utilities are not included in the lease rate. The owner is not willing to subdivide the space for lease by multiple parties.
HCS449 Week-5 Signature Assignment Business Plan Presentation
Resources: Week Two SWOT Analysis assignment, Week Three Staffing Matrix, and Week Four Business Recommendation assignment.
Now it is time to put all of the elements of your business plan together and present it to the governing board of the Community Hospital. This board is comprised of the president of the organization, four business leaders from the community, and three leaders of the medical staff.
Create a 12- to 15-slide Microsoft® PowerPoint® presentation that summarizes your business plan. Include the following in your presentation:
- Evaluate the market and demographic data provided in the scenario.
- Include and discuss the SWOT analysis.
- Indicate the location you selected for the urgent center and why.
- Analyze the type of corporation proposed for the center.
- E.g., department of the hospital or an LLC
- Evaluate the equipment and technology needed at the center to deliver the intended services.
- Do you recommend leasing or purchasing the equipment?
- How does your recommendation impact the revenue and expenses?
- Analyze quality management elements applicable to the center and the proposed services.
- How you will monitor the quality of care at the center?
- Analyze financial information needed to sustain the center
- What are your projected revenue, expenses, and staffing figures?
- Provide your final recommendation for the center based on your business plan analysis.
Format your assignment according to APA guidelines. Include a title slide, detailed speaker notes, and a references slide.
If you use resources outside of the information provided in the assignment, be sure to cite your references using correct APA formatting.
