mplementation Plan for a New Economic Opportunity
At the Whilborne Medical Center WMC, the main economic opportunity that has been identified is setting up of Urgent Care Center (UCC) within the facility’s premises. This follows series of research and development on how to expand the economic viability of the company and making a case with the offering of immediate care for injuries as well as illnesses that are not life threatening. Thus, The UCC at WMC will aim to deliver safe, timely, patient-centered, efficient, and effective health care to the community as well as attempt to address health inequalities in the community. Implementing the process of setting up an UCC at the Whilborne Medical Center requires series of processes, including setting up the budget for key sections of the project to enhance efficiency and align the project to the needs of the society through the allocation of resources to every aspect and detail. The feasibility of the project followed an elaborate environmental analysis that would favor the setting up of the UCC facility. Some of the factors that were considered were the lack of such facility within the community, presence of many illness and injuries that require the availability of such a facility, and the economic viability of the members of the community to afford such an initiative. With this in view, an implementation plan for setting up the UCC has been prepared.
The implementation plan includes a 5-year budget for the UCC, a timeline for rolling out the UCC, an analysis of how the UCC might impact WMC, and an explanation of how WMC should deal with dynamic environmental forces. Therefore, the paper explores how the creation and implementation of an UCC project at the WMC can be achieved through the creation of a budget for relevant expected costs and earning/benefits for the five years through the application of a spreadsheet. Furthermore, the proposes the plan that would enhance the application of cultural and cultural equity in the most ideal manner to achieve the required outcome in terms of he quality of service and the improvement to the community based on their injuries. Additionally, the paper also explores how the application of such initiatives may impact other aspects of caregiving within the facility, community, and industry at large. This also include the strategies for the mitigation of negative impacts that are associated with the project. In the face of the dynamic environmental forces such as competition, legislation, and technology, the paper also discusses the potential strategies and interventions that would improve the productivity of such activities and make the facility more of an asset to the community and hospital. The relevant economic data and the process of implementing the relevant quantitative and qualitative economic financial, and environmental forces are also discussed in the paper.
Create a budget for relevant expected costs and earnings or benefits over the first five years of your proposed economic initiative in excel spreadsheet for the proposed Urgent Care Center
The budget that shows various aspects of costs, earning, and benefits for the first five years is hereby presented. It shows the expectations and the economic viability of the UCC project at the hospital facility and how the community will make it achieve its set goals. the expectation is that the facility is expected to have been completed by 2019, thus the operation begins in 2020 all through 2024 economic cycle.
Assumptions for the budget estimates
Revenue per annum over a 5-year period has been calculated by multiplying the expected patient volume by average consultation charges. It is estimated that around 357 patients will visit the UCC per week and around $156 will be charged per patient per visit (AMN Healthcare, 2015; Yakobi, 2017). Thus, the revenue generated during the first year of operation is expected to be around $2,730,000. The UCC’s revenue is expected to increase by 5.3% annually (“Urgent Care Center Market,” 2018). Operating expenses for the UCC will comprise staff salaries, basic utilities, insurance, and other operating expenses (such as administrative and marketing costs). Staff salaries for the first three years include the salaries of a full-time physician ($232,000), a nurse practitioner ($112,000), a medical assistant ($35,000), and a medical receptionist ($32,000) (U.S. Bureau of Labor Statistics, 2017). However, in years four and five, new staff will be recruited to manage the increased number of patients.
The new staff will comprise a full-time nurse practitioner and a full-time physician, whose salaries will be calculated taking into consideration the 2.7% per annum estimated actual growth rate of employees’ salaries (Economic Policy Institute, 2018). Expenditure on basic utilities is assumed to increase by 5% each year. Insurance expenses are assumed to increase in the fourth and fifth years of operation owing to recruitment of two staff members. Other operating expenses are assumed to be 12% of annual revenue based on trends observed in WMC’s financial statements. The total expected capital cost for the project is $350,000. One half of this cost will be funded through WMC’s reserves, and a bank loan will be arranged to fund the other half. Therefore, WMC will need to take a loan of $175,000 to fund this economic initiative. Assuming that the loan tenure is 5 years and the interest rate is 7% per annum, the loan repayment is expected to be $41,580 per annum.
Organization: __ Whilborne Medical Center WMC
Grant Period: (from 2019 to 2024)
Budget Period: (from 2019 to 2024)
Project Year(s): 5 years
|Cost of Materials (in US Dollars) (contract, specialists, management, assets, facilities, machines, equipment, etc.)||80,000||80,000||50,000||40,000||40,000||290,000|
|Staffing (employees working on the project)||50,000||50,000||50,000||50,000||50,000||250,000|
|Projected earnings (annual growth of 5.3%)||2,730,000||2,800,000||3,050,000||3,134,000||3,369,000||14,083,000|
As per the budget, the UCC will earn a cash surplus during the first 5 years. The cash surplus generated in the fourth and fifth years of operation may be lower than the third year owing to recruitment of staff members in these years. The total cash surplus in the first 5 years is estimated at $7,783,369.30. In order to make this initiative sustainable, the staff working at the UCC will be encouraged to keep WMC’s vision in mind while trying to meet their short- and long-term goals.
Patients are the key external stakeholders in the health care business. If patients receive quick and timely care from excellent service providers, they will be encouraged to visit again and refer new patients to the UCC. Being compassionate with patients, dealing with them in an ethical and culturally sensitive manner, and communicating medical information effectively will encourage patient loyalty while also ensuring that they adhere to their treatment plan (“Helping patients make informed decisions,” 2014). The resultant increase in patient flow and goodwill
will help the UCC become a successful and sustainable venture.
Mitigation of the negative impacts upon the implementation of the project makes it possible for the sustainability of the UCC interventions, especially with the follow-up activities on the progress of the project’s objectives and different parts. For instance, an assessment of the goals and objectives of the study are based on the feasibility report that was initially conducted. Thus, the paper should be based on these values and many other attributes to enhance transparency and adherence to project management norms. Thus, controlling the negative impacts of such interventions will entail the ability of the management to identify the potential risks, such as structural, environmental, and other attributes to make them viable and able to achieve the ultimate goals and objectives. The caregiving risks that this project will address is based on the level of preparedness that is evidently enshrined in the project management norms and ethics.
To ensure that the rollout of the center is done in an ethical and culturally sensitive manner, the UCC will follow the principles of the American Academy of Urgent Care Medicine, which includes not discriminating against patients on the basis of gender, age, color, religion, culture, disability, or other characteristics (Agency for Healthcare Research and Quality, 2015). The UCC will have a diverse workforce that can identify and relate to cultural differences; familiarize themselves with health care delivery relevant to patients’ unique socioeconomic, linguistic, and cultural requirements; and provide unbiased care. Hence, by delivering ethically and culturally sensitive health care services, physicians will enhance patient experience and medical outcomes (Cigna, n.d.)
With all the stakeholders engaged in the process and focused on achieving the center’s vision, the rollout of the UCC will be a success and it will help WMC to sustain itself within the health care business. However, the implementation plan has some areas of uncertainty. The successful rollout of the UCC is highly dependent on the timely disbursement of the loan required for the construction of the UCC. If the loan does not get disbursed on time, then the rollout will have to be set for a different timeline when the loan amount becomes available, and this will delay the implementation plan. Also, it is uncertain whether the actual number of patient visits at the UCC will match the estimated patient volume. This is because people in the community may not be aware of the benefits of availing care at the UCC due to lack of sufficient information, misinformation, or misunderstanding. The center will then have to bear the operating losses arising from low patient turnout.
Further, an aging population suggests that the number of people who will need health care is set to increase in the coming years (Yakobi, 2017). This will overburden all health care practitioners at WMC. WMC must thus be ready to facilitate a larger number of patients than it may have anticipated. This negative impact can be mitigated by expanding WMC over the next few years by using the revenue generated by the UCC. WMC’s capacity and workforce could be expanded through the construction of additional departments or centers, addition of facilities and equipment, and hiring of new staff.
Strategies to Deal with Dynamic Environmental Forces
There are series of environmental forces that are likely to impact the performance of the CCU project, including the presence of a retail health clinic in the center’s vicinity and the possibility of new UCCs being set up in the vicinity. These could affect the urgent care services offered at WMC. Additionally, the legal, economic, cultural, social, and political factors within the region can also impact these activities in the long run. The retail health clinic and the UCC have some common key characteristics such as easy accessibility, extended hours, convenience, and health care at affordable costs (Chang et al., 2015). This makes both clinics viable options for patients. However, UCCs are particularly beneficial to patients who wish to avail immediate health care services from physicians for conditions that are not life-threatening. UCCs, often staffed with emergency medicine physicians and equipped with more testing facilities than a retail clinic, are capable of providing care with high acuity (Chang et al., 2015). Therefore, by virtue of the convenient and quality health care it provides, the UCC is an economically viable asset for
Another factor that could affect the UCC at WMC is possible competition from upcoming UCCs and primary health clinics in the vicinity. Patients will choose the UCC over other clinics in the neighborhood once they have complete trust in it. Staff at the UCC will send out frequent health reminders to regular patients to ensure that the patients do not miss their regular checkups. This will help the patients to not miss their regular checkups. Also, the staff will analyze patients’ views on health care and customize care to improve patient outcomes and experience. This will not only help increase patient visits but also improve patients’ level of trust in the UCC (“Helping patients make informed decisions,” 2014). With all these measures in place, the UCC will be able to beat the competition from upcoming UCCs, making it a viable asset to WMC in the face of unpredictable environmental situations.
Based on the analysis of this business opportunity from the economic perspective, it is evident that such interventions have viable business ideals that should be explored in the creation of UCC. In this regard, the healthcare facility at WMC stands to benefit from the economic feasibility study and the budgeting estimates based on the assumptions that the budget takes into consideration. In this regard, it is possible to estimate the likely outcome of these interventions in the long run, with interventions focusing on cost management, handling of competition, and keeping the risks and threats under control. The paper has explored different aspects of the topic and focused on the economic viability of this opportunity within the community to achieve the ultimate outcome of sustainability, profitability, and efficiency in the management of the resources. The budget for the UCC shows that it will be economically viable for WMC. With the active commitment and cooperation of all the key stakeholders at WMC and the strategies planned to face dynamic environmental forces, the team endeavors to implement the initiative successfully. It is believed that the UCC will serve not only as an additional revenue stream but also as a viable asset that provides quality community health care services.