Week 7 – Signature Assignment: Develop a Business Plan for an Integrated Outpatient Clinic and Ambulatory Surgery Center
The Luxury Floor Plan
Planning Approaches
Table 6 shows the total square footage for the lean plan and the luxury plan. The lean floor plan uses 40,000 less building gross square feet (BGSF) than the luxury floor plan to accommodate the same projected annual workload. Department gross square feet (DGSF) are also adjusted in each floor plan accordingly. The luxury floor plan separates departments and services and there are no shared clinics. Your hybrid floor plan will be a mix of the two versions, lean and luxury.
Table 6 Floor Plan Square Footage Luxury Floor Plan
| Facility Component | Lean | Luxury |
| Urgent Care Center | 8,600 | 15,000 |
| Ambulatory Surgery Center | 13,100 | 22,000 |
| Orthopedic Clinic | 3,700 | 6,200 |
| Medicine Clinic | 0 | 7,500 |
| Surgery Clinic | 0 | 5,500 |
| Neurology Clinic | 0 | 5,900 |
| Shared Clinic | 8,000 | 0 |
| Express Testing Area | 3,400 | 3,800 |
| Entrance Lobby | 3,200 | 3,200 |
| Total DGSF | 40,000 | 69,100 |
| DGSF to BGSF Factor | 1.25 | 1.30 |
| Total BGSF | 50,000 | 90,000 |
Table 7 Services to be Offered
| · Urgent Care: 42,000 annual visits
· Adult Urgent care center with 32,000 annual visits · Pediatric Urgent care center with 10,000 annual visits · Orthopedic Sports Injury Clinic with 5,000 visits/procedures · Ambulatory surgery center · Surgery with 15,000 annual cases · General surgery with 10,000 annual cases · Orthopedic surgery with 5,000 annual cases · Hospital-sponsored clinics: · Medical (23,000 annual visits includes diabetics, adults, and adolescents), · Orthopedics clinic (16,000 annual visits), · dental clinic TBD |
To accommodate the basic and specialty additions, HEALTH! will expand an existing laboratory to include a rapidly advanced testing area for X-rays, electrocardiograms, and specimen collection. This expansion will require additional personnel, i.e., Radiology Technologists, EKG technicians, and phlebotomists.
The HEALTH! Health Economics and Statistics team along with the facilities planning team developed two planning approaches, aptly termed Luxury and Lean. Size and configuration for the luxury and lean floor plans are shown in Figure 14 (Luxury Floor Plan) and Figure 15 (Lean Floor Plan). The hybrid approach may use either space. Along with the HEALTH! Health Economics and Statistics team and the facilities planning team, the clinical and professional staffing teams who are responsible for hiring personnel proposed the following staffing positions shown in Figure 8. You, as the Health Economics intern, are responsible for developing the hybrid approach.
Table 8 Proposed Staffing Options
| Clinical and Administrative Staff for the New Clinic:
· Advanced Registered Nurse Practitioner (ARNP) · Physician Assistant (PA) · Family Practice Physician (MD) · Licensed Practical Nurse (LPN) · Certified Nursing Assistant (CNA) · Certified Medical Assistant (CMA-may be hired in lieu of CNA) · Registered nurses (RN/BSN) · Certified Surgical Technologists (CST) · Physician Assistants trained to assist Orthopedic Surgeons · Registered Physical Therapists (RPT) · Physical Therapy Assistants (PTA) · Orthopedic Surgeon-Sports Medicine Specialist (MD) · General Surgeon (MD) · Administrative Assistants Additional Staff for the Advanced Testing Expansion: · Radiology Technologists · EKG technicians · Phlebotomists |
Assignment Instructions:
Using all of your prior completed assignments, the Becker’s Hospital Review resource, and at least two other resources that must be scholarly or credible, develop your business plan using the guidelines below:
1. Begin with an executive summary as your introduction. In the executive summary, describe what you are going to do. In no more than three sentences summarize and defend your decision as to which scenario -luxury, lean or hybrid – you have selected for the clinic.
2. Using the data from an area of your choosing, for example your own Zip Code or another area, develop a population profile that can be used to create the demand for care. Remember to use the U.S. Census Bureau QuickFacts: United States in your Weekly Resources. Consult the projected staffing models and the services as the inputs to supplying care for your identified population. Your population profile will be in the form of a table. You may want to consult your Week 2 resources.
3. Calculate three different service scenarios: the luxury, the lean, and your hybrid. The luxury model does not use the least cost combination of staffing, while the lean use the least cost combination of staffing, and the hybrid is a mix of your choice that you will describe and defend using your population profile.
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· Calculate the cost for the three different service scenarios, the luxury and the lean, and your hybrid version which is a mix of the other two. Use the amount of $225.00 per square foot in your total building construction calculations.
· Also, calculate the cost of hiring the personnel to staff the clinic from the services suggestions provided in Table 7 staffing suggestions shown in Table 8. Assume staff has a 40-hour workweek, which constitutes 8 hours a day for a 40-hour week. For all staff, assume the salary amount includes benefits. You will decide on the number of staff needed in each of the personnel categories from Table 8. Be sure to use the State Level Salary Data by Health Profession resource in your Weekly Resources.
4. Use the payer variance tables from Week 4 to discuss the revenue impact of the payer mix.
5. Discuss those services that you believe will be the most price elastic and inelastic. Defend your choice of elastic or inelastic.
6. Use your choice of market structure from Week 4 to develop a competitor analysis and discuss the relation of market structure to your choice of the service scenario.
7. Conclude with a final section entitled Recommendations and Conclusion, in which you recommend and defend your choice of a proposal.
Length: 14-16 pages, excluding the population profile table, title page, and references By completing this assignment, you will be developing your competency in Analytical Thinking, Financial Skills and Accountability.
References:7 references
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To successfully complete your Week 7 Signature Assignment for developing a business plan for an integrated outpatient clinic and ambulatory surgery center, here is a detailed guide that outlines the structure and essential components of your assignment.
### Title Page
– **Title of Assignment**
– **Your Name**
– **Institution**
– **Course**
– **Date**
### Executive Summary (Introduction)
– **Brief Overview**: Summarize the purpose and scope of your business plan.
– **Scenario Selection**: In three sentences, summarize and defend your decision to select the hybrid scenario for the clinic.
### Population Profile
– **Introduction**: Describe the area you have chosen (e.g., your Zip Code).
– **Population Data Table**: Develop a table that outlines the demographics, healthcare needs, and projected demand for services.
– **Source**: Use U.S. Census Bureau QuickFacts and other relevant resources.
### Service Scenarios
– **Luxury Scenario**: Calculate the costs and staffing requirements for the luxury floor plan.
– **Lean Scenario**: Calculate the costs and staffing requirements for the lean floor plan.
– **Hybrid Scenario**: Calculate and justify the costs and staffing requirements for your hybrid model.
– **Total Building Construction Costs**: Use $225 per square foot.
– **Staffing Costs**: Calculate based on the number of staff needed in each category (40-hour workweek).
### Revenue Impact of Payer Mix
– **Payer Variance Tables**: Use data from Week 4 to analyze and discuss the revenue impact based on different payer mixes.
### Price Elasticity of Services
– **Price Elastic Services**: Identify and defend which services you believe will be most price elastic.
– **Price Inelastic Services**: Identify and defend which services you believe will be most price inelastic.
### Competitor Analysis and Market Structure
– **Market Structure**: Discuss your choice of market structure (e.g., perfect competition, monopoly, etc.) from Week 4.
– **Competitor Analysis**: Analyze the competitive landscape and relate it to your choice of the service scenario.
### Recommendations and Conclusion
– **Recommendations**: Summarize and defend your choice of the hybrid proposal.
– **Conclusion**: Reflect on the overall feasibility and benefits of the hybrid model.
### References
– **APA-formatted references**: Include at least 7 scholarly or credible sources.
### Detailed Breakdown
#### Executive Summary
Begin your business plan with an executive summary that succinctly describes the project, the chosen scenario, and a brief justification for your choice. This section should be clear and concise, providing a snapshot of your plan.
#### Population Profile
Develop a detailed population profile for your selected area using demographic and healthcare data. This profile should highlight the demand for services provided by your clinic. Use a table format to present this data clearly and consult the U.S. Census Bureau QuickFacts and other relevant resources for accurate information.
#### Service Scenarios
1. **Luxury Scenario**:
– Calculate the total building construction costs and staffing costs based on the luxury floor plan.
– Detail the types and numbers of staff required and the associated costs.
2. **Lean Scenario**:
– Calculate the costs and staffing for the lean floor plan.
– Highlight the cost-saving measures and their impact on service delivery.
3. **Hybrid Scenario**:
– Create a hybrid floor plan by mixing elements of the lean and luxury plans.
– Calculate the costs and justify your choices based on the population profile and projected demand.
– Provide a detailed breakdown of construction and staffing costs.
#### Revenue Impact of Payer Mix
Analyze the revenue impact using payer variance tables. Discuss how different payer mixes will affect the clinic’s financial performance.
#### Price Elasticity of Services
Identify which services are likely to be price elastic and which are price inelastic. Provide a justification for each choice based on economic principles and healthcare market trends.
#### Competitor Analysis and Market Structure
Discuss the chosen market structure for your clinic and conduct a competitor analysis. Explain how the market structure influences your choice of service scenario and overall business strategy.
#### Recommendations and Conclusion
Conclude your business plan with recommendations for moving forward with the hybrid model. Summarize the key points of your plan and provide a strong argument for its feasibility and benefits.
### Submission Checklist
– **Title Page**
– **Executive Summary**
– **Population Profile Table**
– **Service Scenarios (Luxury, Lean, Hybrid)**
– **Revenue Impact Analysis**
– **Price Elasticity Discussion**
– **Competitor Analysis and Market Structure**
– **Recommendations and Conclusion**
– **References**
By following this guide, you will create a comprehensive business plan that addresses all required components and demonstrates your analytical thinking, financial skills, and accountability.
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