Organization in Health Care Facility - Research Paper Example

 Organization in Health Care Facility Over the past few years, all over the world, health care sector has gained substantial attention of health care specialists and experts. In developed countries, health care systems are highly expanded and emerged however; considerable attention is required in the healthcare system and facilities of underdeveloped countries. In the past, healthcare centers were a place to treat and diagnose the sick people until death. Surgeons and physicians infrequently practiced in hospitals and only the fortunate people get the chance to afford proper care at private clinics or homes. Today, the health care level has excelled remarkably. Number of small clinics and large hospitals has been established all over the world, providing better health care systems to the public. The fundamental key for the success of any healthcare organization lies in the business plan of that organization. Therefore, it is essential to pay enormous attention while preparing business plan for startup healthcare organization. This paper emphasizes on the basic structure for startup healthcare business. Introduction to the Specialty Healthcare Center It has been observed that nowadays, vast number of people is suffering from the most common types of diseases. Large number of patients, which visit clinics and hospitals, are found to be suffering from the diseases like cardiovascular problems, prenatal and maternity care, menstrual problems, respiratory problem etc. There are number of reasons behind the emergence of these diseases. Some of them include pollution and unhealthy atmosphere, popularity of junk food, sodas, and soft drinks etc. Therefore, the primary diseases, which will be operated in this healthcare centre, will include gynecology, dermatology, respiratory disease, heart disease, surgery, and gastroenterology. The clinic will comprise of specialized departments of the prior mentioned diseases. Treatments will take place under the strict surveillance of renowned surgeons and physicians. Many people believe that it is not a good scheme to have Specialized Healthcare Centers instead; a complete healthcare center must be the one, which treats, and diagnose the disease of every other patient, which comes to the hospital. Therefore, in the subsequent section of this paper, a brief analysis has been of the advantages and disadvantages of Specialized Healthcare Centers. Advantages of Specialty Health Care Business The first and foremost advantage of Specialized Healthcare Centers is that expert professional surgeons and physicians operate the patients. These surgeons and physicians possess years experience and therefore, there are minute chances of any error or mistake to take place. Most doctors are trained only to provide general services to the patients and then refer them to the specialized surgeons who can better control their health issue. A Specialized Healthcare Center allows its patients to make multiple visits to a single place where their particular health issue is being resolved. According to recent researches, it has been proved that improvement has been observed in heart, vascular and chronic diseases through Specialized Healthcare Centers. The study of Abbott Nutrition, (n.d.) concluded that in diseases like cancer, sarcopenia, kidney diseases, diabetes etc, timely, appropriate and adequate nutrition and treatment can improve the clinical outcomes of the patients, can also improve their quality of life and can reduce the cost of health care. Disadvantages of Specialty Health Care Business The only disadvantage of Specialized Healthcare Center is that it operates and treats only those patients, which are suffering from those diseases, which are being treated at those hospitals. Patients of some other diseases or illness will not be able to get help from these types of clinics. Another disadvantage of Specialized Healthcare Center is that apart from the opinion of the specialist, a second opinion is always required which may conflict with the prior opinion of the specialist. In this case, a patient must stick to only one physician by whom he/she is being treated. Employment Contract Structure As far as the contract structure of the medical staff to be included in the health facility for profit organization, some important points carry vital importance. It is important to note that since the organization is actually the profit organization and the medical staff to be included in the healthcare facility will not be acting their professional duties under volunteer terms and conditions. Those staff members will be providing their professional services in return of formal reward package, which includes basic salary and other benefits and perquisites. Due to such nature of healthcare facility and the medical staff, the contract structure is devised to reflect the professional terms and conditions just like any other for-profit organization devise and offer to its employees. In reality, the contract structure may have explanatory terms and conditions as well as comprehensive clauses, which bind both the healthcare facility and the medical staff, however, the following contact structure outlines the most basic and important clauses which precisely cover the overall purpose of the employment term. Here are those basic clauses of the contract structure. This agreement is made and takes effect on 1 January 2012 between Healthcare Organization, hereafter called "Organization" and (Name of Medical Staff Member), hereafter called "Medical Staff Member". Clauses of Contract 1. The Organization hereby employs Medical Staff Member for a term commencing on the date of this agreement and Medical Staff Member hereby accepts this employment. 2. During the Medical Staff Member's employment, he/she will: a. Dedicate such time and effort as may be reasonably required by the Organization to perform his/her duties in the normal course of action. b. Not engage himself/herself in any other employment or business activity without the written consent of Organization. c. Perform professional duties as may reasonably be requires of him/her by the Organization. 3. Organization shall pay Medical Staff Member, for services rendered by him/her in the following manner: a. Annual sum of $(amount) b. A bonus of $ (amount) or percentage of sales, payable annually based upon the performance goals achieved (Optional) c. Other non-payroll benefits including, health insurance, travel, and business related expenses, and other items specified in attached appendix (Optional). 4. Medical Staff Member understands that he/she will acquire confidential information of business value to the Organization during the course of his/her employment tenure. Medical Staff Member hereby agrees not to reveal such confidential information to any other party, or to utilize such piece of information for his/her own personal interest except during the professional activities beneficial to the Organization. 5. This agreement constitutes as an employment-at-will agreement. The Organization may, at any time, with or without cause, terminate the Medical Staff Member by providing him/her written notice of such termination. 6. Medical Staff Member's employment shall terminate upon his/her death; inability or failure to perform his/her professional duties as required by his/her employment; or his/her written notice of resignation given to the Organization. 7. This agreement constitutes the entire agreement between Organization and Medical Staff Member. Feasibility Study of For-Profit Specialized Healthcare Organization For profit-based hospitals and clinics are legally accountable to their shareholders and owners. The evaluation is done by examining the performance, which is measured in terms of return to shareholders and profitability. Profits, which are earned through this service-product based business, are then distributed to shareholders. The tax treatment for Profit based hospitals is also different from non-profit based hospitals (CBO, 2006). Non-profit hospitals are usually exempted the state and federal law taxes. Apart from that they also enjoy saving from exemption of property tax and local sales tax. For-profit hospitals do not receive tax benefits and are required to meet all the standards and obligations. Since this business plan has been designed for For-Profit Hospital, therefore it will be meeting up all the necessary obligations and requirements. Taxes will be paid as per the legal criteria. For a startup Specialized Healthcare Center, funds will be required to run the initial operations of the business. Debt to equity ratio will be maintained in a proportion that the firm is inclined more towards equity financing. Sources of Funds For every for-profit organization, different sources of funds include personal investment, equity, or debt. Organizations inclined more towards debt are not considered successful enough therefore for this exclusive clinic, it has been decided to acquire large amount of funds through personal investment and equity. The six partners of the clinic will be contributing $1 million each whereas the rest of the amount will be gathered through equity. Different sources of funds include: In order to start the new venture, initial funds will be generated from stockholders of the firm. A loan of around 0.5 million has also been requested from a local bank. This debt will help in covering cost of medical equipment, building leased cost and ambulance costs. Financial Objective Initial Funds Required 5,970,000 Department and Equipments Cost Building 300,000 Advance Salaries of Staff 200,000 Equipment 4,500,000 Laboratory Equipments 360,000 Office Supplies and Equipment 150,000 Promotion 160,000 Equipment for Wards and Rooms 300,000 Total 5,970,000 GAP Analysis After completing the GAP analysis, it has been found that there is huge gap between supply and demand in the healthcare industry. The condition of government hospitals is also known to everyone. The current condition of public healthcare can be categorized as not only weak but also inefficient and under-utilized. We usually avoid letting any of our relative to go in government hospitals and the services, which are offered at private hospitals demand a large amount of fees. Nowadays, good hospitals are belonged to only elite class of customers. Therefore, this hospital will offer good quality services at minimum charges so that anyone can afford and get good services in order to grow more. Staff for the Specialized Healthcare Center A rational plan has been designed for the Specialized Healthcare Clinic, according to which the entire staff for the clinic will be hired. The staff will comprise of the following positions. Senior Physicians Expert medical professional staff that is included in the team will be Neurosurgeons, Physicians, Medical Officers (M.O), Pharmacist, Anesthetic Specialist, Surgeon, Ophthalmologist, and Pathologist. Paramedic Staff Paramedic staff that will be included in the Specialized Healthcare Center will be Dispenser, Nurses, Laboratory Assistant, and Operation Theater Assistants. Criteria for Selecting Specialist The criteria for selecting, hiring, and allocating the Senior Physicians will be as follows. The background education, training, and year’s experience of the candidate will be verified. Apart from this information, success rate and other’s recommendation will also be considered. Some specialist are only obstetrician and do not possess in-depth experience of their specialized field. Therefore, the specialist must have in-depth experience of his relevant field. The specialist must not only be qualified but also should be helpful and friendly with other staff. Without proper coordination among the staff members, successful operations cannot be done. Moreover, it will also become easier to satisfy the patients with better coordination among staff members (Dranove, 2000). In short, every organization has his or her own concerns while selecting a medical specialist. These concerns usually reflect the imports and wants of the entity. Potential Pay Source Generally, it is observed that the Medicaid is almost accepted by most of the hospitals as well as the majority of the drug stores. The core reason behind this is that Medicaid is financed thoroughly by the State and Local governments and very less stringent rules are associated with Medicaid unlike Medicare, which is quite difficult to understand as well as to execute due to increased level of formal regulations. Medicare is often regarded as that facility which is almost similar to the one provided to the retired people having crossed the age of 65. The potential pay sources for this exclusive clinic depend upon the condition of its patients whether the purpose of the visit of patient is to get treatment or to diagnose their condition. In order to visit a doctor or get other health care services, patient has to pay 15% of the Medicare approved amount, as Medicaid is not permitted for the doctor visit, prescription, and other small cures. If a patient receives services from hospital outpatient department or hospital outpatient clinic, he/she has to pay additional coinsurance amount to this clinic. This amount may vary between 25% to 45% Medicare-approved amount depending upon the services, which a patient is receiving. Apart from the prior mentioned pay structure, there are also some other costs which Medicare does not cover for instance Medicare doesn’t covers the expenses of meals, transportation, testing and training which isn’t part of mental health treatment. Since the aim of the clinic is to provide quality healthcare services at a reasonable price, therefore there are certain exceptions, act as well. Patients can request an exception to their prescriber or doctor. Senior surgeons and physicians, if feel adequate, then can consider the request of concession in their charged fees (Department of Health and Human Services, n.d.). Works Cited Abbott Nutrition. (n.d.). Improving Outcomes in CHRONIC DISEASES WITH SPECIALIZED NUTRITION INTERVENTION. Retrieved from http://abbottnutrition.com/Downloads/Improving%20Outcomes%20in%20Chronic%20Diseases%20with%20Specialized%20Nutrition%20Intervention.pdf CBO. (2006). Non-Profit Hospitals and the Provision of Community Benefits. Retrieved from http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/76xx/doc7695/12-06-nonprofit.pdf Department of Health and Human Services . (n.d.). Medicare & Your Mental Health Benefits. New York. Dranove, D. a. (2000). The industrial organization of health care markets. Handbook of Health Economics (1), 1093–1139. Magura, C. (2009, March 14). Medicaid and Medicare Difference. Retrieved from http://www.disabled-world.com/medical/healthcare/medicaid-medicare.php Read More