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Description

To prepare for this Final Project

, review the following documents your instructor has provided within the doc sharing area within the classroom

:

Examine the provided scenario within the Final Project Scenario document.

Refer to the document Assumptions for a Business Plan.

Analyze the background and financial data provided within the Assumptions document and the Business Plan excel template

Note

: Use the “

Week 8 Business Plan Excel Template

” to complete the financial analysis (income statement pro forma) portion of this assignment. The template can be located within the Doc Sharing area of the classroom

The Assignment

Using the Business Plan Template your Instructor uploaded in the Doc Sharing area, create a business plan (8–10 pages) that includes the following:

Executive summary

Program Overview

Location

Services

Other professional offerings

Staffing needs

Operating model

Market Profile

Market overview

Demand forecasting

Financial analysis, including:

Capital requirements

Reimbursement model

Cost per patient visit

Pro forma, including:

Patient revenue

Operating expense

Income from operations

Total expense

Net cash flow

General Guidance on Assignment Length:

Your Assignment should be 8–10 pages

Kentucky Medical Clinic
Business Plan
I.
Executive Summary
II.
Program Overview
Location
Services
Other Professional Offerings
Staffing Needs
Operating Model
III.
Market Profile
Market Overview
Demand Forecasting
IV.
Financial Analysis
Capital Requirements
Reimbursement Model
Cost Per Patient Visit
V.
Pro Forma
Patient Revenue
Operating Expenses
Income from Operations
Total expenses
Net Cash Flow
1
Pro-Forma Income Statement for DTC
Pro Forma Income Statement
Year 1
Year 2
Visits
Revenue Per Visit
Year 3
Year 4
Year 5
4,882
$450
5,126
$450
5,382
$450
5,652
$450
5,934
$450
$0
$0
$0
$0
$0
Excess of Rev over Exp. From Operations
Cummulative Income
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Net Cash from Excess Rev (excl Depreciation)
Cummulative Income Net Cash
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Gross Revenue
Patient Reveue
Gross Patient Revenue
Deductions from Patient Revenue
Contractual
Total Deductions from Revenue
Net Patient Revenue
Operating Expenses
Salaries and Wages
Employee Benefits
Utilities
Repair/Maintenance
Housekeeping
Telephone Service
Depreciation
Malpractice
Miscellaneous/Other
Variable Medical Supply Costs
Other Non-Personnel Costs
Total Operating Expenses
2
Business Plan Scenario
Note: The following scenario provided is fictitious. The scenario is not
based off of any real world medical centers or treatment facilities. This
scenario was specifically created to for students use within this course.
Kentucky Medical Clinic, a city-based non-profit community hospital, is
looking at adding a Cancer Center which will provide comprehensive
Cancer care and education. This is in response to a population health
needs assessment which identified a high rate of Cancer in the population
surrounding the hospital. The population consists of 50% Hispanics, 25%
Caucasians, 12% African American, and 13% recent immigrants from
Northern Africa. Over 50% of the population is living within 200% or below
of the poverty level. You have been asked to develop a business plan for
the Kentucky Medical Clinic which will be presented to [Kentucky Medical
Clinic, Board of Trustees.
Pro Forma Income Statement
Year 1
Year 2
Visits
Revenue Per Visit
Year 3
4.882
$450
5.126
$450
5.382
$450
$0
$0
$0
Excess of Rev over Exp. From Operations
Cummulative Income
$0
$0
$0
$0
$0
$0
Net Cash from Excess Rev (excl Depreciation)
Cummulative Income Net Cash
$0
$0
$0
$0
$0
$0
Gross Revenue
Patient Reveue
Gross Patient Revenue
Deductions from Patient Revenue
Contractual
Total Deductions from Revenue
Net Patient Revenue
Operating Expenses
Salaries and Wages
Employee Benefits
Utilities
Repair/Maintenance
Housekeeping
Telephone Service
Depreciation
Malpractice
Miscellaneous/Other
Variable Medical Supply Costs
Other Non-Personnel Costs
Total Operating Expenses
Year 4
Year 5
5.652
$450
5.934
$450
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Assumptions for Kentucky Medical Clinic
Reimbursement
The cancer center will charge a flat per visit fee of $450. This rate will stay constant.
Contractual discounts for insurance is 30% of gross patient revenue.
Yearly Staffing Costs by Clinical Lead Model
Position
FTEs
Salary/Year/FTE
Physicians
1
$200,000
Nurse Practitioners
2
$85,000
Nurse
2
$60,000
Dialysis Technician
1
$45,000
Assistant/Receptionist
3
$30,000
*** Benefits are assumed to be 25% of salaries
Salaries will increase 3% each year
Demand Forecasting
Year 1 – 4882 visits
Visits will increase 5 % per year
Capital Requirements
Construction Costs per Square Foot – $777.63
Project Costs per Square Foot – $1,308.49
Square Footage – 4,175
Expenses
Operating Costs
Utilities
Repair/Maintenance
Housekeeping
Telephone Service
Depreciation
Malpractice
Miscellaneous/Other
$208,750
$40,500
$20,000
$16,806
$32,000
$50,000
$20,000
Supplies
Medical Supply Costs
$65,767
Other Non-Personnel
$95,351
Costs
All expenses listed to increase by 3% per year
© 2017 Laureate Education, Inc.

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