Throughout this course, you have explored topics in health care economics and financial management. In this final week, you examine how these topics are interrelated as you focus on business planning for health care organizations. Most health care administrators are responsible for developing business plans either independently or as part of an organizational team, making it important for you to gain an understanding of business planning basics. What should a business plan look like? How do you create a plan that is effective?
As you explore the relationships between health care economics and finance, you examine professional ethics. You also create a business plan for a health care organization.
• Evaluate professional ethics in health care finance
• Create a business plan for a health care organization
This page contains the Learning Resources for this week. Be sure to scroll down the page to see all of this week's assigned Learning Resources.
• Chang, J. E., Brundage, S. C., Burke, G. C., & Chokshi, D. A. (2015). Convenient care: Retail clinics and urgent care centers in New York State. New York NY: United Hospital Fund. Retrieved fromhttp://nyshealthfoundation.org/uploads/resources/united-hospital-fund-convenient-care-report.pdf
• Palo Alto Software, Inc. (2015). Family medicine clinic business plan. Retrieved fromhttp://www.bplans.com/family_medicine_clinic_business_plan/executive_summary_fc.php
• Stymiest, D. (2014). Smart money. Health Facilities Management. Retrieved fromhttp://www.hfmmagazine.com/display/HFM-news-article.dhtml?dcrPath=/templatedata/HF_Common/NewsArticle/data/HFM/Magazine/2014/Jan/0114HFM_FEA_infrastructure
• Microsoft, Inc. (2015a). Excel 2007 training courses and tutorials. Retrieved from
• Microsoft, Inc. (2015b). Excel 2010 videos and tutorials. Retrieved from
• Microsoft, Inc. (2015c). Excel 2013 videos and tutorials. Retrieved from https://support.office.com/en-us/article/Excel-2013-training-courses-videos-and-tutorials-aaae974d-3f47-41d9-895e-97a71c2e8a4a?ui=en-US&rs=en-US&ad=US
• Excel Easy. (2016, March 8). Financial Functions. Retrieved from http://www.excel-easy.com/functions/financial-functions.html
Final Project: Business Plan
Business planning is a mapping of your vision for the future of an organization. As a health care administrator, it is important that you are able to create an effective business plan. For this Assignment, you examine the following scenario and develop a business plan for the organization.
A city-based community hospital is looking at adding an urgent care facility in a rural area. Urgent care is the delivery of ambulatory care in a facility dedicated to the delivery of unscheduled, walk-in care outside of a hospital emergency department. Development of the Rural Urgent Care (RUC) facility will facilitate access to care providers through extended service hours within closer geographic proximity to patients, families, and caregivers. RUC will act to alleviate demand for emergency department services by shifting lower acute patients to a less resource-intensive environment.
This project is in response to the shift from volume- to value-based health care. Payers and purchasers are interested in improving economic efficiency by shifting utilization from emergency department to lower cost settings, such as RUC. Several competing hospitals have hired emergency department physicians, as part of their integration strategy to participate in accountable care organizations (ACO) contracts. The hospital needs to respond to the competitive situation by making a sound investment in the RUC facility that addresses both financial and economic situations. The facility will be staffed with physicians and will include a radiology suite, laboratory suite, and other health-related ventures to help the hospital grow. You must help the board develop a business plan for this urgent care unit.
To prepare for this Final Project:
• Examine the provided scenario.
• Refer to the document "Executive Summary, Overview, and Financial Data for Investment in the Rural Urgent Care Center" provided here and in this week's Learning Resources. Analyze the background and financial data for the RUC facility.
The Final Project Assignment:
Using the "Project Business Plan Template", create a business plan (8-10 pages) that includes the following:
• Executive summary
• Market analysis, including:
o Macro- and microeconomic implications of market competition
o ACO payment incentives to the organization
o How the RUC impacts economic efficiency
• Financial analysis, including:
o Capital requirements
o Reimbursement model
o Cost per patient visit
o Pro forma, including:
-Income from operations
-Net cash flow