MedSurg Medical Center Business - Research Paper Example

MedSurg Medical Center Business Plan Proposal Number Table of Contents Executive Summary 3 2.Company, Service and Equipment Description 4 2.1.Service Description 4 3.Organizational Plan 5 3.1.Management Summary 5 3.2.Organizational Structure 6 4.Marketing Plan 7 4.1.Demographics 7 4.2.Target Market 7 4.3.Competitors 8 4.4.Advertising and Marketing 8 5.Financial Analysis 9 5.1.Projected Income Statement 9 5.2.Types of Revenue 9 6.References 11 1. Executive Summary The influx of the HIV/AIDS phenomenon in the society requires up to date health facilities for the part of the community that is affected (Lane, 2011). As a mean breaking into the market, this proposal is for the formation of a new health care clinic called MedSurg Medical Center, which will focus on the provision of health services to the part of the population affected by the HIV/AIDS menace. This report will summarize the business plan of the proposed health clinic geared towards caring for the HIV/Aids population, including children, adults, and family as a whole. This business plan proposal will include a succinct examination of the market of the proposed center and the services to be provided and the equipment to be used. The business plan proposal will also describe the organizational structure of the health care center, which will include an examination of the organizational structure and a complete analysis of the employee makeup and remuneration practices. The next part of this business plan proposal will be focused on a marketing analysis of the proposed health care center. This will include the business demographics of the organization, the target market and the marketing techniques that will be used. This will also include a competitor analysis, which will be analyzed in the context of business growth and breaking into the current niche. The last part of this business plan proposal will outline a financial analysis of the proposed health care center. The financial analysis will outline the expected types of revenue, which includes an analysis of the service provided, the labor to be used, suppliers, space requirements, and other income statement items. This will help in determining the profitability of the new venture. 2. Company, Service and Equipment Description This is a new company targeted at providing health care services to the part of the population affected by HIV and AIDS. This will be done by providing testing, counseling, and follow-up services for the afflicted patients. The company will be family oriented, meaning that the whole family is encouraged to turn up for the tests and care provided by our organization. The initial funding for the organization will be found through a partnership of two directors, who will henceforth work as equal partners in the organization. Therefore, the main service provided by the proposed health care center include testing, counseling and the provision of medicines, mainly Anti-retroviral, to the patients visiting the center. 2.1. Service Description As already stated, the main services provided by our health care center are testing, counseling and medical care. The testing services will include a test for HIV in the body, a virus that leads to AIDS. This testing process will target families, especially young couples and newborn children. The testing service will be done in a confidential manner, and includes a provision for advising infected people on how to prevent the transmission of the virus. The testing process will be conducted by qualified personnel, and the collected blood will be examined in state-of-the art laboratories. The second service provided by the proposed health care center also includes counseling for affected, infected, and non-infected patients. Every patient who visits the health care center will need professional counseling before and after the test (Hariri and McKenna, 2007). The non-infected patients will be counseled on how to avoid contacting the virus, and how to coexist with patients who tested positive for the virus. Conversely, the infected patients will be counseled on how to live with the virus, how to avoid spreading it, their dietary concerns, and the medicines that can be sued to curb the rapid development of the virus. The presence of HIV can be very traumatizing, and most patients usually lose all hope in life, therefore, the counseling section of the clinic is particularly important (Hall, Song, Rhodes et al, 2008) The last service is the provision of medicines, mainly Anti-retroviral drugs that slow down the spread of the AIDS-causing virus in the body. This will require the inclusion of a pharmacy in the plan for the health care center. 2.2. Equipment As previously stated, MedSurg Medical center will be focused on a variety of service provision ventures, therefore, a lot of specialized equipment will be needed. The main equipment needed is the medical equipment to be used in the testing process. The equipment needed for testing include equipment for testing by ELISA (Enzyme-linked immunosorbent assay), and the Polymerase chain reaction. The equipment needed for the second type of test is usually expensive and high maintenance, so the funding used will be targeted at this equipment. 3. Organizational Plan 3.1. Management Summary As already stated, the formation of the organization will be done through the partnership of two people. Therefore, the organizational structure will be made of two top executives, followed by the technical team, after which will be the functional team. The organizational structure of the firm is shown in the following diagram. 3.2. Organizational Structure The responsibilities of the various members of the organization are divided into management and actual working in the health care center. The finance director will be tasked with finding a credible source of funding and allocating the funds to the various parts of the organization. The marketing director will be tasked with promoting the organization and finding new niches into which the company can expand. This task is expected to be hardest in the first few months of operations, since the company will have to find new clients. The human resources manager is tasked with the responsibility of finding and training personnel for the organization. This includes finding the right people to train the personnel, providing a means of organizing their remuneration and task allocation in the organization. The operations manager has the biggest job in the organization, since the job includes overlooking all the employee and activities. The operations manager will focus on coordinating all the employees in the organization. All the managers in the company will report to the two partners, and the employees report to the operations manager. 4. Marketing Plan 4.1. Demographics The prevalence of the AIDS virus in the country requires massive investment in health care centers that specifically target this population. According to the Center for Disease Control and Prevention, the prevalence of AIDS in the country is increasing, which necessitates the provision of more health care services. According to CDC, there have been more that half a million deaths in the country attributed to HIV and AIDS, and more than 40,000 people are living with the virus; therefore, the health care center is a perfect idea. We will focus on the prevention of transmission, the early detection of infection, and the provision of anti-retroviral medication for infected patients. 4.2. Target Market As already stated, the prevalence of AIDS in the country requires the input of several health professionals. The target market for this health care clinic is divided into four broad groups; the infected, negative patients, youth and couples or families. The infected people will be targeted or provision of anti-retroviral drugs, which will help them live healthy lives. These individuals will also be counseled on how to live positively an not transmit the disease to other people. The health facility will also target patients who tested negative, which will include counseling services and advice on how to remain negative. The youth and families are targeted for counseling on how to avoid infection or on how to live with infected individuals. Discrimination is one of the main problems that affect AIDS patients; therefore, the organization will target the public for sensitization on the AIDS patients. 4.3. Competitors The main competitors in the market are the established hospitals in the region. Since the organization is a new one, patients will be more comfortable with their previous doctors; therefore, this will present a problem. However, this plan foresees that the competitor factors will be neutralized within 2 years of the formation of the company, since clients in the health care sector are made and stay. 4.4. Advertising and Marketing The first step in ensuring the success of any venture is the promotion of the organization and the services provided to the organization. The marketing manager will be tasked with the job of ensuring that the organization is recognized in the whole region. The main plan is the use of fliers and Internet marketing to promote the organization, since many individuals can be found in thee areas. The marketing plan will mainly target families of all types that have some exposure to the AIDS phenomenon. This will ensure that the organization keeps its clients in the long-run. The marketing plan to be used by the organization will also use incentives to attract clients. For example, the clients will be assured of their privacy, and as an added incentive, will be given a discount for the first services that they receive from the health center. The clients will also be given discounts in subsequent visits to the health center if they bring along any of their acquaintances as new clients. 5. Financial Analysis 5.1. Projected Income Statement MedSurg Projected Income Statement For the Period ended 31 December 2012 $ $ Operating Revenues: Gross patient service revenue $152,000 Free care $6,000 Contractual $50,000 Net patient service revenue $96,000 Other operating revenue $20,152 Total Operating revenue $116,152 Operating Expenses Depreciation $12,000 Interest $5,200 Bad Debt $14,560 Other Operating expenses $13,625 Total Operating expenses $45,385 Net operating income $70,767 Non-operating Revenue Investment income $26,540 Gains/Losses -$5,632 Other Income(Expenses) $98,563 Total non-operating income $119,471 Net Income $190,238 5.2. Types of Revenue The revenue to be earned by MedSurg Health Care limited is divided into different groups, with the first one being the patient service revenue. Gross patient service revenue includes the income earned from testing services, counseling sessions, pharmacy, and follow-up sessions with the patients. This makes up the bulk of the revenues that the health care service will earn. Other revenues include contractual agreements and the services offered to other health care centers. The non-operating income includes earnings from investments, including government bonds and savings. The biggest part of non-operating income includes the services offered in the health care facility, activities including canteen sales, gift shop revenues, parking garage fees, space and equipment rentals and research grants made to the health care center. Looking at the income statement, it is evident the projections can only be achieved if all the sections of the health care facility are handled effectively. The labor requirements to handle the volume of patients include a constant flow of doctors and health service providers. Since the health center will be a 24-hour operation, the doctors will have to work in shifts to make the required projections. As already stated, the labor required in the organization will be divided into different specialties. This means that the cost of labor will be diversified, with the individuals at the top being the doctors and health care professionals required in the clinic. The second tire of labor in the company will include the nurses, laboratory assistants, nutritionists and the social workers required in the health care center. The supplies to be provided in the health care center will cover all the needs of a health care center, since the main requirements include medical supplies. Apart from the little equipment required to test for the virus itself, the most supplies will cover facilities for the various patients to talk to the doctors, social workers, nutritionists and counselors. Therefore, the space requirements will be varied in the organization, since all the employees will need to work from offices. 6. References CDC. (2004). Estimated numbers of deaths of persons with AIDS, by year of death and selected characteristics, 2000–2004: United States. Retrieved on February 20, 2012 from: CDC. (2004). Estimated rates for adults and adolescents living with HIV infection (not AIDS) or with AIDS (per 100,000 population), 2004: United States. Retrieved on February 20, 2012 from: CDC. (2009). HIV/AIDS Statistics and Surveillance. Retrieved on February 20, 2012 from: Hall, I., and Song, R., and Rhodes. P. et al. (2008). Estimation of HIV incidence in the United States. JAMA. Vol. 300(5). Pp. 520-529. Hariri, S., and McKenna, T. (2007). Epidemiology of human immunodeficiency virus in the United States. Clin Micro Rev. Vol. 20(3). Pp. 478-488. Lane, S. (2011). A Community Leader’s Guide to Hospital: Finance. The Access Project: Harvard School of Public Health. Read More