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.
Format your paper according to APA guidelines.
Below is the Business Plan Scenario (You used this on the paper from last week)
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:
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.
Expert Solution Preview
Introduction:
As a medical professor in charge of creating college assignments and answers for medical college students, I have been asked to evaluate the feasibility of establishing an off-site urgent care center at a local mall for Community Hospital, a 180-bed acute care hospital that is qualified as a not-for-profit facility. In this paper, I will identify and recommend technology needs, hours of operation, and services offered for the health care organization. I will recommend which services should be provided at the center, describe the hours of operation, and recommend the major equipment and technology needed to provide the recommended service. I will also discuss the type of corporation the center should consider and include at least two peer-reviewed, scholarly, or similar references to support my recommendations.
Answer:
Community Hospital should consider offering urgent care services at the local mall to cater to patients with minor illnesses and injuries who need immediate medical attention but do not require the level of care provided in an emergency room. Urgent care centers are appropriate at this site because the mall is centrally located and easily accessible for patients in the regional market. Additionally, the urgent care center will reduce patient wait times and improve access to care for patients who may face challenges getting to the main hospital campus due to distance or traffic.
The hours of operation for the urgent care center should be from 8:00 am to 8:00 pm, seven days a week. These hours are appropriate because they align with most patients’ schedules, including those who may require medical attention after working hours or on weekends when the main hospital campus may not be open. Furthermore, the extended hours of operation will encourage patients with acute illnesses or injuries to seek care promptly, reducing the likelihood of their condition worsening and requiring hospitalization.
The major equipment and technology needed to provide urgent care services at the center include medical equipment such as diagnostic tools, exam tables, and other medical supplies. Additionally, the center will need a laboratory for testing, an X-ray machine for diagnostic imaging, and electronic health records (EHR) for efficient patient management. The projected cost of this equipment is approximately $250,000.
The center should consider establishing an LLC, a type of corporation that provides owners with limited liability protection and tax benefits. An LLC would allow the urgent care center to operate independently while still being affiliated with Community Hospital. This setup provides flexibility to make decisions and address issues specific to the urgent care center without impacting the hospital’s operations.
In conclusion, the establishment of an urgent care center at the local mall is appropriate for Community Hospital to improve the delivery of care and increase patient access to care. The center should offer urgent care services from 8:00 am to 8:00 pm, seven days a week, and the necessary equipment and technology for providing these services is estimated to cost approximately $250,000. The center should consider forming an LLC to operate independently while remaining affiliated with the hospital.
