Implementation Plan and Budget for a New Healthcare Facility

Overview

The economics program proposed for the healthcare organization is an urgent care department in the hospital. The facility will provide care for people with non-life-threatening injuries and illnesses. The new facility will improve the safety, time, efficiency, and effectiveness of care provided to individuals and the community (Yakobi, 2017). The economic and environmental analysis supported the new project’s feasibility in improving the organisation’s financial position. The project involves an implementation plan with a five-year budget and a timeline to roll out the project. It also includes the expected impact of the new facility for the hospital.

Proposed Budget for the Project

The prepared budget for the project indicates the expected expenses and revenue from the project over the five years. The budget is prepared with an expectation that the plan will be operational from 2020. The five-year period covers 2021-2024. The revenue of the project per year is obtained by multiplying the anticipated number of patients by the average consultation fees. It is expected that about 405 patients will visit the facility weekly, and they will pay an average of $205 per visit. Therefore, the expected revenue for the first year will be $3,985,200. The revenue is expected to increase by 5.3% annually (U.S. Bureau of Labor Statistics, 2017). The expenses for the facility will include essential utilities, staff salaries, insurance, and operating expenses (marketing and administrative). The salaries for the staff for the first three years will consist of the following figures.

 

	Salary
One full-time physician	$232,000
One nurse practitioner	$112,000
One medical assistant	$35,000
One medical receptionist	$32,000

 

The facility will require more staff for the fourth and fifth years because the patients will have increased. The firm will hire both a nurse practitioner and a physician on a full-time basis.  Essential utilities will grow by 5% annually. Insurance will increase during the fourth and fifth years because of additional staff. Other expenses will be 12% of annual revenue, while the capital cost is expected to be $355,500. The hospital will fund 50%, while a bank loan will pay the remaining 50%. The repayment of the loan for the five years will be about $42,630 per annum. The comparison between the expenses and the expected revenue from the project reveals that it is viable. Hence, the management should readily support and invest in the project.

The Economic Initiative Roll Out

The implementation team will create a timeline to roll out the project. The approval process by the senior hospital management will take two months. The bank will also approve the loan within the same time, while the construction process will take seven months. The whole process will begin in January and end in August 2020. However, the new department will start its operations in January 2021. The implementation team will work with the top management and other internal and external stakeholders (hospital staff, patients, shareholders, government agencies) to be successful (Berman, Raval, & Goldin, 2018). They will hold regular meetings in the hospital to discuss progress.

Furthermore, the American Academy of Urgent Care Medicine will provide the principles for ethical standards of the project. It will offer equitable care and avoid discrimination against people based on their characteristics (Conners et al., 2017; Artiga & Hinton, 2019). The plan will also include an inclusive and equitable workforce. The project will also engage members of the community to prevent resistance and ensure complete support for its successful implementation.  

 

References

Artiga, S., & Hinton, E. (2019). Beyond health care: the role of social determinants in promoting health and health equity. Health, 20, 10-14

Berman, L., Raval, M. V., & Goldin, A. (2018, December). Process improvement strategies: Designing and implementing quality improvement research. In Seminars in pediatric surgery (Vol. 27, No. 6, pp. 379-385). WB Saunders.

Conners, G. P., Kressly, S. J., Perrin, J. M., Richerson, J. E., Sankrithi, U. M., CARE, S. O. U., … & COMMITTEE ON PEDIATRIC EMERGENCY MEDICINE. (2017). Nonemergency acute care: when it’s not the medical home. Pediatrics, 139(5), e20170629.

U.S. Bureau of Labor Statistics. (2017). Occupational employment statistics. Retrieved from https://www.bls.gov/oes/current/naics4_621400.htm

Yakobi, R. (2017). Impact of urgent care centers on emergency department visits. Health Care Current Reviews, 5(3). http://dx.doi.org/10.4172/2375-4273.1000204

 

Appendix

Item	Cost
Staff	$645,000
Insurance	$42,000
Materials	$102,000
Materials	$55,000